Archive for the ‘Ability to repay’ Category

Ability to repay

Wednesday, November 11th, 2009

The borrower must be able to demonstrate that they will be able to service and repay the loan and show when it will be repaid. The bank will require a complete set of accounts including an audited balance sheet, profit and loss statement and, most important of all, a cashflow statement and an analysis of future cashflow projections. These should be supported by a business plan that justifies the key assumptions in the financial projections.