Factors to Consider While Making a Financial Statement.

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For a business to acquire a loan from the bank it must provide a well drafted financial statement. Financial Statements are the periodic report cards of how a business is doing from a monetary
Perspective (Brechner, R. 2012).
The business should be generating some profit as the loan acquired should be paid back in a given period of time. If the business operates at a loss the banker would not be in a position to grant the loan. The cash flow of the business should be such that the cash expenditure of the business relates to the cash source and also project the future expenditure. Collateral should be available to compensate for the much loan to be acquired.

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Running head: FINANCIAL STATEMENT1Factors to Consider While Making a Financial Statement.NameInstitution2FINANCIAL STATEMENTFactors to Consider While Making a Financial Statement.For a business to acquire a loan from the bank it must provide a well drafted financial statement.Financial Statements are the periodic report cards of how a business is doing from a monetaryPerspective (Brechner, R. 2012).The business should be generating some profit as the loan acquired should be paid back in agiven period of time. If the business operates at a loss the banker would not be in a position togrant the loan. The cash flow of the business should be such that the cash expenditure of thebusiness relates to the cash source and also project the future expenditure. Collateral should beavailable to compensate for the much loan to be acquired.The direction of growth the business is
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