Banks lend against evidence. A clear pack gets a faster answer. A messy one gets more questions.
What lenders usually ask for
- Financial statements for the last two or three years. Many banks want them audited; check with yours.
- Current management accounts: profit and loss, balance sheet and cash flow for the year to date.
- A cash forecast showing how the loan will be repaid.
- Receivables and payables aging.
- What the money is for, and how much you need.
The ratios they calculate
- Current ratio: current assets divided by current liabilities. Can you pay what falls due this year?
- Gearing: borrowings divided by equity. How much of the business lenders already fund.
- Debt service cover: cash profit divided by loan repayments and interest. Can the business carry the new instalments?
- Interest cover: EBITDA divided by finance costs.
Each bank sets its own limits. Know your numbers before the meeting, not after.
Mistakes that slow approval
- Management accounts that don't agree with the bank statements.
- A forecast with no written assumptions.
- Asking for a round number with no use of funds behind it.
How Finance Pack helps
Every monthly report already holds the statements and ratios a bank looks at, and Standard adds the cash forecast. Need something specific for your bank? Tell us and we will support you. We don't negotiate with the bank or give lending advice.