The problem
A lender is not only looking at whether your forecast shows a profit. It needs to understand how the funding will be used, whether the assumptions are credible, whether the business can service the borrowing and what happens if trading is weaker than expected.
1. Start with the funding request
Write down the exact amount required, what it will pay for, when it is needed and the expected repayment structure. The forecast should show the funding arriving and the cash consequences of using it.
2. Make the opening numbers agree with reality
Compare opening cash, receivables, payables, debt and recent revenue with your latest actual information. An unexplained jump between today's business and Month 1 of the forecast creates an obvious question.
3. Document the assumptions
Record the assumptions behind customer numbers, average sale value, margins, wages, supplier costs and payment timing. A formula can be correct while the assumption feeding it is weak.
4. Test repayment pressure
Include interest, capital repayments and fees. Identify the lowest cash point and examine debt-service capacity using the lender's own calculation where one is supplied.
5. Stress-test the forecast
Run a credible downside case: lower revenue, slower customer payments, higher costs or loss of a major customer. The purpose is to understand the pressure point before submission.
6. Check the workbook and application together
Make sure the model reconciles and agrees with the figures in the business plan, accounts, debt information and application.
What to do next
If you already have a model, run it through the Lender-Ready Financial Model Check before submission. If the lender needs a short-term liquidity view, use the JEBS 13-Week Cash Flow Forecast alongside it.