Business Advisory
Working-capital proposal: document-readiness checklist
How businesses can prepare consistent financial and operational information for a lender review.
Consistency matters more than volume
A lender should be able to reconcile the proposal with GST filings, income-tax records, audited financial statements, bank statements and the latest management information. Unexplained differences slow assessment and weaken the narrative.
Core information pack
- Three years' financial statements and tax returns
- Latest provisional financials
- GST turnover reconciliation
- Debtor and creditor ageing
- Stock statements and valuation basis
- Existing sanction letters and repayment schedules
- Projected profitability, cash flow and working-capital assumptions
Explain assumptions
Projection growth, gross margin, inventory holding and collection periods should be linked to capacity, orders and historical experience. Record downside sensitivities rather than presenting only a single optimistic case.