Lenders Generate Extra Income Everyday
They may not tell you, but many lenders like when you cash flows are not perfect or your credit report has a few blemishes. It allows them to adjust the interest rate up. You can be the king of cash flow. Removal all doubt with an undying dedication to building cash reserves, accessing key working capital, and forward-looking planning. Yes, forecast cash flow.
Do You Have a Cash Flow Management Plan?
It may be time to develop one
You can develop a Cash Flow Management Plan and you definitely can be the king of cash flow. It is a decision. Make decision today to become the type of business owner that has 750+ credit scores, 80+ Paydex score, and superior cash reserves.
The benefits of a good Cash Flow plan:
- Peaceful Sleep
- Business flexibility and agility
- Top notch access to premium lenders, business financing
- Increased separation between personal credit and business credit
- Fluent, easy approvals for thousands of leasing programs
- Positive interest from collaborative partners
How Lender’s Look at Cash Flow
Have a Plan to Look Bette
Cash flow ratios compare a company’s cash flows to other areas of its financial statement, and they measure how well a company can pay off the liabilities it owes.
Cash flow is a critical factor that lenders use during the loan application process. This includes large banks, community banks and community development financial institutions (CDFIs). The reason is that Cash flow is a key indicator of the financial health of a business. Therefore, it is important for you as a business owner to build outstanding cash flow metrics.
Company tax returns are an important part of calculating cash flow. Are you straying on top of your company tax returns? Paying payroll taxes on-time? This is essential.
The key statements that lenders request are:
- Year-to-Date Profit & Loss
- Cash Flow Statement
- Balance Sheet
- Business Bank Statements
These are referred to as cash flow statements and or interim financials.
Lender are considering:
- Business Planning: they can determine if you “plan” or just “wing it”. Show them that you plan.
- Consistency: Lenders want to see that your business consistently generates enough income to cover your core operating expenses and any existing debt obligations.
- Repayment ability: Lenders look at whether your current cash flow is sufficient for operations and debt repayment.
- Debt-service coverage ratio (DSCR): A simplified calculation is ‘net operating income divided by total debt service.’ A DSCR of 1.00 typically means that your business has just enough operating income to pay off its debt service costs.
- Business Credit Scoring: what type of risk lending to your company may pose.
BB Bookwork’s Inc assists small business owners with building a comprehensive Cash Flow Management Plan. Guarantees a 3x more business financing approvals. Participate in one of our Cash Flow Management Programs. Build powerful profiles to double your business over the next five years.
Contact sales@advancedbusinessbuilder.com to learn more.