What Information Will a Lender Need From My Client?
Prepare the right information for the right funding route, without asking the client to produce an unnecessary data room.
Start with the funding question, not the checklist
A lender needs enough information to understand the business, the purpose of the funding, the proposed repayment route and the risks. The precise requirements will depend on the facility. A short-term asset-backed proposal will not be assessed in exactly the same way as a cash-flow loan, invoice finance facility or commercial mortgage.
Before asking the client for everything they have, define three points: how much is required, what the money will be used for, and how the borrowing is expected to be repaid.
The core information pack
- Latest filed statutory accounts, including full notes where available.
- Current management accounts, ideally with meaningful comparatives.
- Up-to-date balance sheet and details of material movements.
- Bank statements for the principal trading accounts.
- A schedule of existing borrowing, security and monthly repayments.
- A concise explanation of the funding requirement and intended outcome.
- Ownership, group structure and key management information.
- Commentary explaining unusual, exceptional or non-recurring items.
Information that depends on the facility
| Funding route | Additional information commonly relevant |
|---|---|
| Invoice finance | Aged debtors, aged creditors, customer concentration, credit notes, contractual terms and evidence of delivery. |
| Cash-flow loan or RCF | Forecast profit and loss, cash flow, balance sheet, debt service and downside assumptions. |
| Asset finance | Asset details, supplier quote, deposit, useful life and whether the asset is new or used. |
| Property-backed finance | Property details, valuation information, tenancy or development information, exit route and professional costs. |
| Acquisition or MBO | Heads of terms, transaction structure, target financials, completion accounts approach and integration plan. |
Making forecasts lender-ready
A forecast is more useful when the assumptions are visible. Lenders will usually want to understand the bridge from historic trading to the forecast, what drives revenue, how margins have been calculated and when working-capital movements occur.
A strong forecast is not necessarily the most optimistic one. It is the one management can explain, support and update.
Accountant checklist
- Reconcile the latest management accounts to the underlying records.
- Explain changes in margin, debtor days, stock, payroll and overheads.
- Separate recurring performance from exceptional or one-off items.
- Include existing debt repayments and planned capital expenditure.
- Show the effect of the proposed facility, not just the position before funding.
Shadowfax can help shape the request
Funding calculators and comparison tools
Use the figures as an initial indication, then discuss the client's circumstances before relying on a particular funding route.
Funding Calculators
Explore Shadowfax tools for estimating potential borrowing, availability and funding costs.
Explore funding calculatorsLoan Comparison Tool
Compare quoted borrowing costs on a more consistent basis, including flat-rate or factor-rate facilities.
Compare loan costsWant to discuss a client funding requirement?
Start with a confidential discussion about the business, the requirement and the options. An initial situation can be discussed on an anonymised basis where appropriate.
This guide is for general information only. Funding availability and terms depend on the circumstances of the applicant, the facility and the lender's assessment. Shadowfax Funding Solutions Limited is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 937211 and is a member of the NACFB under membership number 28659.