Financial preparation for a funding discussion.
A funding request needs an amount, a purpose and a credible cash schedule. Grafton prepares the financial information behind that request so the business can explain what it needs and how repayment would fit its operations.
Establish the cash requirement first.
The starting point may be a seasonal inventory purchase, an approaching maturity or a gap between collections and supplier payments. We identify the amount and period involved, then relate them to the operating forecast.
A one-time payment and a recurring monthly shortfall should not produce the same explanation. The forecast needs to show whether cash recovers through operations or depends on another source of funding.
Prepare figures that can be followed back.
The relevant material may include internal financial statements, existing borrowing, a cash forecast and a schedule of the proposed use of funds. We check that opening balances, repayment dates and forecast assumptions agree across those materials.
Where figures differ, the explanation belongs with them. An adjusted earnings figure, for example, needs a reconciliation to the accounts and an explanation of what has been excluded. An application should not depend on unexplained changes between documents.
- Internal financial statements and relevant period comparisons.
- Existing borrowing, repayment dates and facility assumptions.
- Cash requirements and the proposed use of funds.
- Forecast assumptions and reconciliations needed to explain the figures.
Put repayments beside operating cash.
We model the proposed payment schedule using stated assumptions for interest, fees and principal. An alternative collection pattern or a later start to operations can then be shown as a separate scenario.
This work helps management understand when payments fall due and how much cash remains under those assumptions. It does not establish that a facility is available. Availability, conditions and approval come from the relevant funding provider.
Support the financial discussion.
Grafton can prepare financial schedules and explanations for the business to use with its lenders and professional advisers. Scope is agreed around the information required and the company’s current records.
Our role is financial preparation and analysis. We do not lend, place securities, arrange financing or hold client funds. Legal, tax and accounting opinions remain with the appropriate appointed professionals.