Building a funding case lenders say yes to
The loan application is half complete. The financial statements are still in draft. The forecast doesn't exist yet. Nobody has worked out whether the business can comfortably service the repayments. The plan is ready. The numbers aren't.
Lenders read the numbers before they read the plan. A strong opportunity with weak or incomplete numbers is a hard case to approve. A clear financial case makes the same opportunity far easier to fund, often on terms that suit the business.
The short version
- A strong funding case includes current financial statements, up-to-date tax lodgements, a realistic forecast, a clear demonstration that repayments can be serviced and a defined use of funds.
- NOIZE Accounting prepares the financial case from current records kept by Books.
- NOIZE Finance helps however suits you, from an introduction to our dedicated broker to preparing the full funding pack.
- Numbers first, plan second.
- NOIZE provides administrative support and business strategy.
- Where work is outside our skillset, or the law requires it, we make sure an appropriately qualified professional is involved.
What a funding case includes
01Financial statements
Recent profit and loss and balance sheet, prepared accurately.
02Current trading
Year-to-date results showing how the business is performing now.
03Tax compliance
Lodgements up to date, so there are no surprises for the lender.
04Forecast
Expected income, costs and cash flow, including the new borrowing.
05Serviceability
Evidence the business can meet repayments comfortably, with headroom.
06Use of funds
What the money is for and how it improves the business.
07Security and structure
What assets or promise are available, and how the borrowing fits the business structure.
What lenders are really asking
Will this business repay? Lenders look for stable or growing earnings, sensible debt levels, adequate cash flow and a clear purpose for the money. Every document in the funding case should help answer that question clearly.
> I've invested in dozens of ventures and raised funding myself. The applications that moved fastest answered the lender's questions before they asked them. A clean forecast with a serviceability buffer said more than any pitch could.
“Things really got moving beyond our expectations.”
How Accounting and Finance work together
NOIZE Accounting prepares the financial statements, forecast and serviceability analysis, working from records NOIZE Books keeps current. NOIZE Finance helps shape and present that case, working with our dedicated broker. Because both teams work from the same numbers, the case is consistent from first conversation to approval.
An illustrative example
Picture a growing logistics business seeking funding for new vehicles. Its first application stalled because the statements were in draft and there was no forecast. Accounting finalises the statements, builds a forecast including the new repayments and shows a comfortable serviceability buffer. Finance and our dedicated broker take it to an asset finance lender. The second application moves quickly.
Mistakes to avoid
- Don't apply before your statements and tax lodgements are current.
- Don't present an overly optimistic forecast. Lenders discount it.
- Don't borrow without understanding the repayment impact on cash.
What we handle, and when specialists step in
Much of this is administration NOIZE Accounting handles for you: building forecasts, setting budgets and preparing management reports. Alongside the admin, we advise on how building a funding case lenders say yes to fits the wider plan.
For anything requiring a registered tax agent, we use an appropriately qualified professional. Exactly how that is shared is agreed at the strategy or proposal stage.
Questions to ask before approaching a lender
- Are our financial statements final and current?
- Are tax lodgements up to date?
- Do we have a realistic forecast that includes the new repayments?
- Can we show a comfortable serviceability buffer?
- Is the use of funds clear and costed?
- Is it all organised in one funding pack with a cover page?
Ticking these off first makes the broker's job easier and the application stronger.
Where to start this week
Check three things: are your latest financial statements final, are your tax lodgements up to date and do you have a forecast? If any answer is no, start there before approaching a lender. See accounting.noize.com.au and finance.noize.com.au.
Bring the statements, forecast and serviceability analysis together in one funding pack with a clear cover page, so the broker can present it without chasing anything.
How Accounting connects to the rest of NOIZE
Every department leans on the others, and this one is no exception. Together, the numbers support every major decision the business makes. NOIZE Books keeps the records current so advice is based on this month, not last year. NOIZE Strategy sets the priorities, and Accounting costs them and tests what the business can afford. NOIZE Finance uses Accounting's statements and forecasts to prepare a funding pack that makes the broker's job easy. NOIZE Legal works with Accounting on structure. Where the law requires a registered tax agent, an appropriately qualified professional step in.
Related reading
This article is general information only. It is not legal, tax or financial advice, and it does not take your circumstances into account. Speak to a qualified adviser before acting.
NOIZE provides administrative support and business strategy. Where work is outside our skillset, or the law requires it, we make sure an appropriately qualified professional is involved.
Common questions
What financial documents do lenders require?
Usually financial statements, current trading results, tax lodgements, a forecast and a use of funds.
What is loan serviceability?
The business's ability to meet loan repayments from its cash flow.
How do I make my loan application stronger?
Current, accurate statements, a realistic forecast, a clear use of funds and evidence of repayment capacity.
Can a forecast help my application?
Yes. It shows how the business will meet repayments.
Do lenders accept draft financial statements?
Some may, but final statements carry more weight.
How long does it take to prepare a funding case?
With current books, often days to a couple of weeks.
Who finds the lender?
NOIZE Finance helps however suits you, from an introduction to our dedicated broker to preparing the full funding pack.
What should I bring to a first conversation?
The last set of accounts and what the funding is for.
Is NOIZE Accounting a registered tax agent?
We handle planning, reporting and strategy directly. Where the law requires a registered tax agent, an appropriately qualified professional is involved.
What is a serviceability buffer?
The margin between expected cash flow and loan repayments, showing the business can absorb a slower period.
Does NOIZE work with a broker?
Yes. NOIZE Finance has a dedicated broker.
What is management accounting?
Reporting and analysis designed to help run the business, rather than to meet compliance requirements.
Can you help us set prices?
Yes. Accounting can analyse costs and margins to support pricing decisions.
Do you work with businesses across Australia?
Yes. Most accounting work can be done remotely, wherever the business is based.
How do we start with NOIZE Accounting?
Bring your last set of accounts and the decision you are trying to make.
What is budgeting?
Setting expected income and spending for a period, so results can be measured against a plan.
Who presents the funding case?
It depends on the client. We might introduce our dedicated broker, help structure the information or prepare the full pack.
Does the funding pack need audited statements?
Usually not for small business lending, but statements should be final and accurate.
Your first strategy conversation is on us.
Have a chatThe brand for business.
