BP Outline

IV. Financial Information

Here is where you demonstrate to the lender your need for a loan and your ability to repay. It is important that the financial information be consistent throughout the plan as well as on the Personal Financial Statement, and the Loan Application. If yours is an existing business, it will be necessary to provide up to three years of previous business and/or personal tax returns. This shows your business trends and how well you have manage and marketed your business. The proposed owners of a start-up should submit their personal tax returns for the past three years.
Projections are necessary for either an existing business or a start-up and must be based on realistic and verifiable assumptions from your local market area. For an existing business, projections will be compared to past performance. Significant differences between your actual business performance and projected future performance should be explained.

Include:

Historical business or personal financial statements for the past three years.

A monthly cash flow projection for up to three years, depending on the terms of the loan.

Existing businesses should include:

Most recent Balance Sheet and the Profit/Loss Statement.

If you are purchasing an existing business:

An appraisal or verification of value anticipated purchases and financial statements from the prior owner will be required.

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