← Commercial Finance Answers

New companies & lender requirements

Why does a lender ask for management accounts when filed accounts are available?

Filed accounts may describe an older period, while management figures can show how the business is trading now.

The practical answer

Filed accounts may describe an older period, while management figures can show how the business is trading now.

Provide the latest reliable profit and loss, balance sheet and supporting information requested. Explain material changes, seasonal movements and any large transactions affecting the current position.

If figures are provisional, say so and identify who prepared them. Consistency between accounts, bank information and the application can help the lender understand the proposal without avoidable follow-up questions.

Important

Commercial finance is subject to status, lender approval and the specific asset and transaction. The right structure depends on the complete circumstances of the business.

What should I do next?

Have the asset details, supplier information and an outline of what the business needs ready. DCF can then discuss the requirement and identify which lenders may be suitable.

Read: New-start asset finance →