The data room a lender expects to see
Most credit processes stall not on judgement but on missing documents. A complete file on day one is the single cheapest way to shorten a raise.
The time between a lender's first meeting and its sanction is usually spent waiting — for the promoter's accountant, for a missing year of returns, for an explanation of a charge nobody remembers creating. Almost all of it is avoidable.
The financial core
Three years of audited financial statements with the auditor's report and notes; the current year's provisional accounts; income-tax returns for the same periods; and GST returns that reconcile to reported revenue. Lenders increasingly test that reconciliation, and an unexplained difference between GST turnover and audited turnover is one of the fastest ways to stall a file.
Twelve months of statements for every bank account, current sanction letters for all existing facilities, and the latest stock and book-debt statements submitted to lenders complete the core.
The corporate record
Charter documents, the shareholding pattern, board resolutions and KYC for the company and its directors. A list of charges registered against the company — every lender checks the Ministry of Corporate Affairs register, and old charges that were repaid but never satisfied will surface.
The forward view
CMA data and projections that reconcile to the audited accounts; an ageing of debtors and creditors; the order book or contract pipeline; and a clear statement of the use of funds. For term finance, add quotations, project cost and the means of finance.
The narrative
Finally, a concise business note: what the company does, who runs it, how it makes money, what has gone wrong in the past and what was done about it. It is the document most companies skip and the one credit officers most appreciate, because it tells them how to read everything else.
A complete, consistent data room does not guarantee an approval. It does guarantee that the decision is made on the business rather than on the paperwork — which is all a well-run company should ever ask for.
This article is general information about the financing landscape, current as of its publication date. It is not financial, legal or tax advice; regulations change, and every company’s position is different.
