Financial forecasting 101 how to plan for a business loan - PowerPoint PPT Presentation

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Financial forecasting 101 how to plan for a business loan

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Financial forecasting is the most important step to prevent your small business from the financial crises. Predicting a rainy day and performing the precautionary measures will definitely prevent your small business from destruction. Here is a complete guide on financial forecasting and how to apply for a business loan. – PowerPoint PPT presentation

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Title: Financial forecasting 101 how to plan for a business loan


1
FINANCIAL FORECASTING 101 HOW TO PLAN FOR A
BUSINESS LOAN
www.onlinecheck.com
2
Financial forecasting is a must step in running a
small business. Despite an impeccable business
plan, a business might need external help from a
business loan to manage the cash flow
3
What is a financial forecast?
4
What is financial forecast?
  • Financial forecasting comprises of numerous
    financial statements often labeled as pro forma
    statements. Lenders, banks and angel investors
    consider this essential financial information
    when they are working on a business loan deal
    with you.
  • An ideal financial plan consists of
  • An income statement
  • A CFS (cash flow statement)
  • A pro forma balance sheet
  • Income statement This mentions the amount of
    money that comes in and goes out of your
    business.
  • CFS This uses the data from the income statement
    to predict profit and loss.
  • Pro Forma Balance Sheet This uses the data from
    income statement and CFS to forecast assets,
    liabilities, and equity.

5
Why Financial Forecasting is important?
6
It is important to formulate a business plan to
stay ahead of the financial surprises.
7
What does your income statement depict?
The primary purpose of the income statement is to
compare your assets to the expenses.
  • Expenses
  • Project and introspect your sales

8
What does Cash Flow Statement depict?
As a business manager, you must know the
difference between cash flow and profit. A CFS
can help you figure out the total amount of money
you need from the lender. External funding is a
remarkable and beneficial way to take your
business on the path of success.
9
  • How to create a pro forma balance sheet and what
    does it depict?
  • Use the balance sheet to foretell the financial
    changes in the business by comparing the
    companys asset, equities, and liabilities.
  • Assets
  • Liabilities
  • Tip The key is to make a rational and realistic
    plan for the future.

10
Cheat sheet for financial forecasting
  • Create a column for each month of the year.
  • Add another row and list and add your current
    cash position in that row.
  • Make a row titled sources of cash and add the
    relevant data.
  • Next, create another row titled complete list of
    sources of cash and add the number you are
    starting with.
  • Another row that is dedicated to the uses of the
    cash.
  • Another section would be signifying the bottom
    line.
  • Finally, take that number from the bottom line
    section and move it to the top row of the next
    month.

11
Once you have completed the financial
forecasting, you are multiple steps closer to
leveraging the financial planning and forecasting
for the growth of your small business.
12
Have a look at all the small business loans
offered by the Merchant Advisors, and Apply Today
13
GET IN TOUCH
E-mail
info_at_merchantadvisors.com
Address
9-5 Novelty Lane Suite B Essex, Ct 06426
Social _at_onlinecheck
Phone
(833) 827-4412
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