Business Loan Financial Forecasts
Projections prepared and reviewed by an accountant to support a business loan or funding application — with repayment affordability modelled explicitly and every assumption written down.
What lenders look for
A forecast a lender can actually interrogate.
Most business lending decisions come down to two questions: is the plan credible, and can the business service the repayments if trading is softer than hoped? A forecast prepared for a funding application needs to answer both without the reader having to reverse-engineer your spreadsheet.
We build the model around the specific facility you are applying for — term loan, overdraft, asset finance or a director's investment — so the repayment profile, interest and any security sit in the numbers rather than in a covering note.
- Monthly P&L and cash flow covering the term of the facility
- Loan drawdown, interest and capital repayment schedule
- Debt service coverage shown month by month
- Downside case showing the headroom if sales fall short
- Use-of-funds summary tying the borrowing to specific spend
- Written assumptions the lender's analyst can check
Who it's for
Typical funding situations we model.
Bank or alternative lender term loans
Growth capital, refinancing or working capital facilities where the lender asks for projections.
Asset and equipment finance
Vehicles, plant or kit, where repayments and the productivity gain both need to appear in the numbers.
Property or premises moves
New premises, fit-out costs, deposits and the cash gap before the site trades at capacity.
Acquisitions and buy-ins
Funding the purchase of a business or a shareholding, with combined trading modelled after completion.
How it works
From initial call to lender-ready pack.
Initial call
We establish what you are applying for, the amount, the likely term and the lender's requirements.
Fixed fee agreed
We scope the work and quote a bespoke fixed fee. Pricing depends on complexity, so we do not publish a standard rate.
Historic and forward data
We take recent accounts or management figures where they exist, plus your forward assumptions on sales, staff and overheads.
Model and repayment build
We model trading, VAT, employer costs and the facility itself, so the repayment effect on cash is visible each month.
Stress testing
We run a downside case — typically reduced sales, delayed receipts or higher costs — and show the resulting cash headroom.
Review and walkthrough
A qualified accountant reviews the pack, then talks you through it so you can answer questions from the lender confidently.
Deliverables
What goes into the pack.
- Monthly P&L, cash flow and balance sheet over the facility term
- Repayment schedule and interest cost by month
- Debt service coverage and minimum cash balance
- Base, upside and downside scenarios
- Use of funds and the expected trading effect
- Assumptions log written in plain English
Related
Getting the underlying figures right first.
Lenders frequently ask for up-to-date bookkeeping and filed accounts alongside projections. If those are behind, our bookkeeping service and annual accounts service can bring the records up to date before you apply.
If the business is new and has no trading history, a startup financial forecast is usually the better starting point.
Assumptions and limitations
What a forecast can and cannot do.
- We prepare and review forecasts. We are not brokers or lenders, we do not submit applications on your behalf, and we cannot influence a credit decision.
- No forecast can guarantee funding, an approval, a rate or a facility size. Any claim otherwise should be treated with caution.
- Projections rest on assumptions you supply. Where an assumption is unsupported, we flag it rather than presenting it as fact.
- Debt service figures use the terms you give us. If the lender offers different terms, the model needs updating before you rely on it.
- A forecast is not a valuation, an audit, or an opinion on the financial statements.
Common Questions
What forecasts do lenders usually ask for?
Most commonly a monthly profit and loss and cash flow forecast covering at least 12 months, often extending to the term of the facility, plus a summary of assumptions and how the money will be used. Some lenders also ask for a projected balance sheet.
Do you deal with the lender directly?
Only if you ask us to and the lender is happy for us to. We are not a broker — we prepare and review the figures, and we can join a call to explain the assumptions if that helps.
How far ahead should the forecast go?
As a rule, at least as far as the facility term, so the lender can see repayments serviced to the end. Twelve months monthly followed by annual summaries is a common structure.
Can you help if my accounts are out of date?
Yes. We can bring bookkeeping up to date and prepare accounts first. Lenders generally want current figures alongside projections, so this is often the quickest route to a credible application.
How much does it cost?
It depends on the complexity of the business and the facility. We agree a fixed fee after an initial call, before any work begins.
Will you tell me if the borrowing looks unaffordable?
Yes. If the modelling shows the repayments do not work under reasonable assumptions, we will say so. That is more useful to you than a forecast built to reach a predetermined answer.
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Preparing a funding application?
Book an initial call and tell us what you are applying for and by when. We'll confirm what the lender is likely to need and quote a fixed fee.