What this means
A bank-finance package should allow the lender to understand the business, historic performance, working-capital cycle, existing debt and the purpose of the requested facility. Begin with final or provisional financial statements that reconcile to the books.
Practical points
Prepare receivable/payable ageing, inventory data, bank statements, tax returns, GST summaries and existing sanction details as applicable. Forecasts should state assumptions rather than presenting a single number without explanation.
Control and documentation
For working capital, connect the requested limit to the operating cycle. For term finance, connect the repayment schedule to projected cash generation and the asset/project being financed.
Before you act
Lender formats and requirements differ. This article is a preparation guide; it does not represent a guarantee of sanction or a substitute for the bank’s credit process.
Sources
This article is general educational information as at the review date shown above. It is not a substitute for the legislation, notification, circular or advice applicable to a particular person or transaction. Verify the current official source before acting.