Completely overwhelmed by the Australian property market, Matt turned to his "utterly professional" MFAA mortgage broker.
In order to be able to help your business, your finance broker is going to need to see a range of information. Here we look at what financial and business paperwork you'll need to take.
Your finance broker needs to understand the true financial state of your business. They need to know whether it's been trading profitably. They need to know what your assets and liabilities are. In short, they need the same things your lender will need: profit & loss statements and balance sheets for the last three years.
Cash flow is the lifeblood of a business. Cash flow, or the absence of it, is possibly the reason you're seeing the finance broker. So you need to be able to show your finance broker what your cash flow projections are for the next 12 months.
There is no point painting an unrealistic picture of your business. That can only lead to trouble down the track. However, if there is genuine reason for optimism, you should share that with the broker. Of course, hard orders are worth more than promises.
Where are you going to take the business? Do you have plans for new products? Growth into new markets? More staff? This is all key information for your finance broker. If these plans are formally documented, it can help inspire confidence in your broker and your lender.
To discuss your business finance needs, contact an MFAA member today.