Your cash flow should be realistic, and it should show how much money you need and why you need it. What your bank does with your business plan once they have it tells you a lot about your bank. They also look at the ability of your business to repay a loan by analyzing the following indicators.
But most likely, it will need to focus on a specific market segment to reach its full business potential. You have more credibility if you have had experience in business and in the field you're entering.
There are at least two other ways to finance your small business: You can lease your equipment, or you can use a credit card to buy whatever you need at very high monthly interest rates. For existing companies, there should be evidence of steady cash flow in the past.
This legal requirement helps protect the banks' depositors against risk. Realism in the financials. It provides an overview of how financially sound your business is.
Bankers need to assess whether your project is a good risk and whether you will be able to repay your loan. Statements Bankers will be giving this section a lot of attention.
Things like rent, utilities, marketing costs and any other regular expenses. Loan officers are likely to expect realistic monthly cash flow for the next 12 months.