5 Essential Documents for Getting the Capital Your Business Needs

Posted 05.16.2017

Do you find the financing process frustrating? It takes too long, you’re asked for things repeatedly and there is a non-stop stream of questions. It’s a process that can create stress and anxiety. What you need is the capital when you need it.

You know what to do to win a customer’s business. Build relationships, have a solid product or service, fair price for value and of course hitting expectations. But how do you get the capital needed to do the job you just earned?

Financing too often occurs when urgency is at its highest. Lenders or investors may not be able to advance the money as fast you need or deliver the best terms and rate. Be prepared – don’t be the road block in the process for obtaining your business capital. Find out who we finance.


Five Essentials for getting Capital.

The 5 essential documents for obtaining the capital you need include:


1. Accountant Prepared Financial Statements – get your statements done and have them ready. Make sure there are plenty of notes to explain all that might need to be. Consider moving your fiscal year end to get your statements sooner. Also, consider getting them done more than once a year.

2. Interim Financial Statements – if your accountant prepared statements get to be more than three months old you will need to produce interim statements. Invest the time to make sure your internal reports are credible, meaningful and accurate. Too often we have clients unnecessarily delayed or declined because the interim statements were just not good enough to be trusted.

3. Proof of Up to Date Taxes – first and foremost pay your taxes, all of them. Paid or not have your statements ready and a plan to pay them. Nothing puts the brakes on a deal faster than a company that owes money to the Canada Revenue Agency. If you do owe, contact the CRA on how to deal with debt.

4. Equipment and Asset Listing – create a list of all the company’s equipment and assets. Be sure to include details on any financing and for equipment usage numbers like mileage and hours. Depending on the circumstance and the market, it is not a bad idea to have an appraisal done and in hand, but talk it through first.

5. Statement of Personal Net Worth – for larger operations personal guarantees usually aren’t required. They are asked for, however, at least half the time. So, have one ready and up to date.

These five items must be brought together in a story convincing enough for a lender to invest in your company. Being prepared with clear, credible and fulsome documents will make the process move along faster. How your story is packaged and presented will make the difference between a yes or no.

Additionally, the greater the confidence you create in your business the more likely you are to get the investment and financing you need when you need it. Two key pieces to creating that confidence are a budget with forecast and a financial plan, more on that at a later date.

Patron West can package your information to tell a story that gives your business the best chance at getting the capital, term, structure and rate it needs.

With over 20 years of experience providing commercial equipment financing Patron West has helped thousands of business owners. We haven’t seen or heard it all yet so call or connect with us, we’d like to hear your story. Our success comes from your business achieving its own.

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