The Triple “A” Funding System – Step Two – Deep Dive Evaluation – Part Two

In last week’s blog we continued our look at the 9-Step Triple “A” Funding System, which is the system we use every time we work with a client looking for business finance.

And last week we were on step two, called the Deep Dive Evaluation.

This step is where we do a ‘deep dive’ on your deal, so that we understand in detail your funding requirements. It also helps you understand exactly how we can help and what type of funding could be available.

And part of the Deep Dive Evaluation includes the 4-Point Checklist. This is an invaluable checklist which you can use to help you identify the key information you need to have available as part of the overall application process.

The information you need to supply to the lender will be slightly different depending on whether for instance, you need a business loan, factoring, invoice discounting or perhaps property development finance.

The checklist below is an example of the information you will need to provide for a business loan or commercial mortgage. The checklist is applicable whether you are buying a new business or refinancing/capital raising on an existing business.

So, here’s the four sections and the information you need to provide under each section.

This will give you a good idea of the type of information a lender is looking for if they are to give your finance application serious consideration.

1. All About You – the lender needs to know about you

• Who is the borrower – for instance, personal name, partnership, limited company, pension fund.
• Your background – your experience and expertise.
• Details of any previous business experience – any relevant experience is always helpful.
• Your financial position – income and expenditure statement and net worth statement.

2. All About the Business – the lender needs to know about the business

• Location and address of the business.
• Description of the business – what does it do.
• History and background of the business – always important for a lender to know.
• Your plans and proposals for the future – important so a lender can gain an understanding of how you are looking to take the business forward.

3. All About the Numbers – the lender needs to know the numbers

• Purchase price or current value of the business and freehold property value if relevant.
• Current turnover and profitability for the business.
• Projected increase in turnover and profitability if relevant.
• Your cash injection into the deal if this is relevant.
• Your precise loan requirements.

4. All About the Paperwork – you will need to supply some essential information

• Copy of your passport – proof of identity.
• Copy of a utility bill (less than 3 months old) – proof of residency.
• Last 3 months personal bank statements.
• Last 3 months business bank statements – if business already in your ownership.
• Latest set of audited accounts for subject business.
• Latest managements accounts – depending on date of latest audited accounts.
• Projections and/or cash flow forecast – if relevant

The point of going through this checklist is it will crystallise your thinking and help you to think through the information you will need to supply to us if you want your loan application to stand the best possible chance of success.

Having gone through the checklist, prepared the relevant information and done our Deep Dive Evaluation it’s time to move on to step three of the Triple “A” Funding System – the Funding Roadmap.

That’s next week.