Yes, you do need financial projections. Financial projections provide potential lenders the information they require to make an informed decision regarding the future financial success of your new venture.
You need to know these three things to ensure your financial projections are acceptable to the lender.
First, your financial projections must span a minimum of 3-5 years. Second, your financial projections must be consistent with other established businesses within your business classification. For instance, if you are starting a dog walking service, it’s necessary to research the financial performance of other dog walking businesses. There may be some variance in your financial outcomes, but you must be able to convince an underwriter why these variances are warranted.
Third, the financial projections must be able to service the new debt requested at the accepted predetermined level by the lender or else your loan application will likely to be declined.
Preparing financial projections is not easy. But don’t worry, we’re able to connect you to a professional who can help you every step of the way. Simply give us a call at 858-762-2774 or visit our website at thinksba.com/contact.
My SBA Loan Pro
The My SBA Loan Pro Podcast is hosted by Your SBA Loan Pro, Ryan Smith. In each episode Ryan provides valuable information and best practices regarding the SBA loan program.
Each episode is approximately one minute in length and addresses topics related specifically to SBA 7(a) and 504 loan programs to purchase real estate, acquire a business or franchise and obtain working capital.
You’re encouraged to listen and subscribe to ensure you’re notified each time a new episode is available. Ryan publishes a new episode weekly on Tuesday mornings, unless he’s kidnapped to a deserted island of course.