Robin Lamb | Published 9 September 2026 | Updated 15 September 2026
You may be considering finance for equipment, premises, an acquisition or additional working capital. Before assembling documents, establish what the lender needs to understand about the proposal and the business behind it.
Preparation is not about making the numbers look favourable. It is about presenting a credible, current financial position and explaining the borrowing purpose.
Requirements vary by lender, finance type, borrowing entity and circumstances. Good preparation does not guarantee approval.
Explain the purpose before presenting the figures
Describe what the finance would fund, the proposed amount and when the money would be needed. Include the contribution the owners expect to make and where those funds would come from.
Explain how the commitment fits the business’s plans. Replacing essential equipment is different from funding an acquisition or covering a seasonal cash shortage.
If the proposal depends on a purchase, bring the quote, draft contract or other available details. Your accountant needs to understand the commitment, not just the requested loan amount.
Understand what historical records show
A lender may request several types of financial information because they serve different purposes:
- Financial statements show reported income, expenses, assets and liabilities for the relevant period or date.
- Tax returns show income, deductions and other information reported for income tax purposes. They are not a substitute for current trading information.
- Business activity statements report obligations such as GST and relevant pay as you go amounts. They are not complete profit and loss statements.
- Bank statements show movements through particular accounts, including receipts, payments and balances.
These documents should be considered together rather than treated as interchangeable evidence.
Start with the lender’s request list where one is available. Clarify the periods, entities and level of detail required before commissioning additional reports.
Bring the financial position up to date
Annual accounts may no longer reflect how the business is trading. A lender may therefore request interim management accounts or other current information.
Explain changes since the last financial year, including new contracts, lost customers, changed margins or additional costs.
The current reports also need supporting records. Outstanding customer invoices affect expected collections, while supplier balances show payments still to be made. Old or disputed invoices should not be presented as though collection is certain.
Reconciled records help establish whether reported cash, loans and other balances agree with the underlying information. Where business records need attention, identify the gaps rather than treating an unfinished report as final.
Distinguish profit from repayment cash
Accounting profit is not the same as cash available to meet repayments.
Sales may have been recorded before customers pay. Cash may be tied up in stock, used for equipment or needed to repay existing debt. A profitable year can still contain months when cash is tight.
A cash flow forecast helps explain expected receipts and payments over time. Consider seasonality, customer payment patterns, supplier terms, tax payments and the working capital required for growth.
Make the assumptions visible. If the forecast relies on higher sales, improved margins or faster collections, explain what supports those expectations and when the improvement is expected.
Distinguish confirmed work from hoped for opportunities. A forecast is an estimate, not an assurance that the business will generate the projected cash.
Include commitments and make the structure clear
Present the existing obligations alongside the proposed borrowing.
These may include loans, leases, tax liabilities, payment arrangements and amounts owed to or by owners and related entities. Identify repayment dates and any substantial amounts falling due.
Do not omit an obligation because it sits outside the main trading bank account or because the creditor is a family member.
Also explain which entity operates the business, owns the relevant assets and proposes to borrow. Where several entities are involved, identify how money moves between them.
Security and guarantees need discussion with the lender or broker. Your solicitor should explain the legal implications of the proposed documents. Financial information prepared by an accountant does not resolve those legal questions.
Explain unusual results without rewriting them
A significant expense, asset sale or disruption may make one period difficult to compare with another.
Provide the supporting records and explain what happened. If an expense is described as nonrecurring, explain why it is not expected to recur. Apply the same care to unusually favourable income.
Keep any explanatory analysis distinguishable from the reported results. Corrections should address genuine errors, not improve appearances. Relevant information should not be removed simply because it makes the proposal harder to assess.
What to bring to an initial accounting discussion
Useful starting information includes:
- The lender’s request list, if available.
- Recent financial statements and current management reports.
- Existing finance details and significant outstanding obligations.
- Details of the proposed purchase or funding purpose.
- Any forecasts already prepared, including their assumptions.
- The proposed borrower and relevant ownership details.
Your accountant can prepare and explain financial information within the agreed scope. A broker can discuss finance options, while the lender assesses the application and makes the credit decision. An accountant’s involvement is not a certification of future repayment capacity.
Finance preparation is not automatically part of every annual accounting engagement. Agree on the reports, explanations and other work required.
Speak with Jaha when finance is being considered, so the accounting work can be scoped around the proposal and the information requested.