Funding Readiness Checklist

You are ready to ask for funding when you can hand a lender or investor current, reconciled statements, aging reports, a debt schedule, a forecast and your tax returns without scrambling. Use this checklist to see which of those you can produce today and which need work first.

By Jake McKenna, FounderPublished Last reviewed

This is general information, not tax or investment advice. Lenders set their own requirements.

How do I use this checklist?

Tick each item you could send a lender tomorrow. Anything you cannot tick is your to-do list. The SBA says the contents of a loan application vary with the size of the loan and the lender's processing method, so treat this as a starting point and ask your lender for its own list.

Are my books ready?

  • [ ] Every bank and credit card account is reconciled to its statement through the last closed month
  • [ ] Transactions are categorized consistently
  • [ ] The most recent month is closed (see the month-end close checklist)
  • [ ] If the books are behind, a catch-up plan is in place (see catch-up bookkeeping)

Can I produce the statements?

  • [ ] A current profit and loss statement
  • [ ] A current balance sheet
  • [ ] Accounts receivable and accounts payable aging reports
  • [ ] Inventory reports, if you hold inventory

The SBA's 7(a) page describes a lender looking for a borrower who can produce timely and accurate financial statements, receivable and payable agings and inventory reports. A bank guide to SBA loans also lists balance sheets, income statements and account aging reports.

Do I have the documents lenders typically ask for?

  • [ ] Business tax returns for the past two to three years
  • [ ] Personal tax returns for the same period
  • [ ] A current personal financial statement for each owner
  • [ ] A debt schedule, if the business already has credit
  • [ ] A business plan

These come from a bank guide to SBA loans, not from a rule that applies to every loan. Our guide to financial statements for a business loan explains each document.

Can I show where the business is going?

Where do we help?

Funding readiness and financing support are part of our fractional CFO and advisory service. The monthly CFO package includes a rolling 13-week cash forecast and annual budget and forecast updates, built on controller-level reporting. We prepare the financial information. We do not prepare tax returns, perform audits or give investment advice, so your tax returns come from your CPA or tax professional. See financing support.

Need this done for you? See our Fractional CFO & Advisory service, or pricing. English Oak Financial does not prepare tax returns, perform audits or give investment advice. This guide is general information, not tax, legal or investment advice.

Sources

Common questions

What do lenders look at first?

That depends on the lender and the loan. A bank guide to SBA loans lists tax returns, current financial statements, a debt schedule and a business plan. Ask your lender for its list.

Do I need a forecast to get a loan?

Not every lender asks for one, but a forecast shows where the business is heading and helps you plan repayments. Your lender will tell you what it requires.

Can you help with my funding plan?

We help you get your financial information in order. What we do for a specific funding plan is agreed with you as part of your scope of work. We do not give investment advice.

Talk it through with us

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