Reality: Banks focus on cash flow and historical data, not ROI or CAGR. A deal may cash flow with your practice’s profits but not be profitable alone and still get approved for a bank loan.

Sep 19, 2025 · Stricter Reporting Standards: Borrowers will be required to submit detailed quarterly or annual financial records, including balance sheets, profit and loss statements, and tax returns, all …

Mar 27, 2024 · Regardless of Lender’s conventional requirements though, prior to first disbursement of loan proceeds, Lender must obtain tax transcripts or business tax returns to verify the applicant’s size.

Common covenants include financial ratios, reporting requirements, and restrictions on certain business actions. Violating covenants can lead to serious consequences, including the lender calling the loan …

Apr 25, 2025 · Stay ahead of covenants by reviewing your balance sheet and P&L statements regularly. Lenders may require financials, tax returns, or aging reports at regular intervals. If you expect to …

As consultants, we've seen banks restructure, call a loan, or classify a loan when a borrower fails to meet covenant requirements like these. Is this always necessary? Here's the low-down. The …

Jan 12, 2024 · The Internal Revenue Service (“IRS”) has issued a policy update stating that, effective June 30, 2024, a lender’s ability to obtain borrowers’ tax returns for verification purposes will only be …

These covenants require your company to continue to operate moving forward, while applying for the loan. Complying with all laws, regulations and paying taxes are just a few examples of what is required.

SBA requests agreements or evidence to support or document compliance with these laws, including reports required by applicable statutes or the regulations in this chapter.

Don’t get sloppy on forgetting the simple covenants, like submitting financials and tax returns on time. If you do foresee a problem with a covenant, prepare a realistic plan for getting your company in …