Financial Profile Overview
Every business has a financial profile that needs to be reviewed and understood by a financing provider when you apply for business financing. The financial profile is essentially a business asset that should periodically be brought up to date so that it is ready to be provided when business financing is required.
The reality is that most business owners and/or managers do not maintain an up-to-date financial profile and chose to compile and assemble one each and every time financing is required. The risk with taking this approach is having incomplete, inconsistent, and potentially contradictory information conveyed to a financing underwriter.
The expression you only have one chance to make a first impression certainly can apply to incomplete and/or inaccurate financial profiles that are not kept up to date.
The business financial profile can be broken down into past, present, and future parts which we will go over in the following sections and explain why a financing provider may request certain information items as well as how they intend to review and analyze them.