18 Business Loan Requirements – Accounts Aging Reports

18 Business Loan Requirements – Accounts Aging Reports

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Depending on the type of loan and the financial institution, the lender may ask to see your current accounts receivable (A/R/) and accounts payable (A/P/) aging reports. Essentially, this is going to document how well your business collects on payments owed for goods and services and subsequently, how you handle your own bills.

So for instance, with the A/R report the lender is able to see things such as overdue payments, the length of time any payment is overdue, and the efficiency with which you are able to collect money owed. The reason they want to see this is because they need to know first off if you are able to collect money and if not, what might be underlying this. Too many past due accounts suggest a problem when it comes to the credit you’re extending customers and your ability to get them to pay off their debts. On the other hand, a few overdue accounts point to a system that seems to be working for you.

On the flip side, we have the A/P report. This is an accounting of your own bills. The same logic applies. If you are past due on too many accounts, then perhaps there are some issues that need to be addressed. If delinquent on numerous accounts, this could very well be a red flag to a lender who is obviously going to be concerned about your repayment ability.

At First Union, we want to do everything we can to help you get the funding you need, whether in the form of a merchant cash advance or a short-term loan. The key is to be prepared and have all of the pieces in place prior to applying. It is always a good idea to look into you’re A/P and A/R reports and addresses any issues you might see first, thus giving you a better chance of qualifying. Call today!

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First Union Lending LLC is a dually licensed Lender/Broker with its main offices located at 4900 Millenia Blvd First Floor Orlando, FL 32839. First Union Lending LLC and its ads are meant for continental United States, including Alaska and Hawaii small business owners. Business Loans offered by First Union Lending LLC have varying rates and terms that can range from 30 - 120 payments and all rates and terms are based on eligibility of the business and its owners. The actual terms are based on credit, business history, industry, amount and terms. As an example, a $5,000 loan paid over 5 years at 8% would have a total repayment of $6,082.92 over the life of the loan. We use the latest encryption to protect sensitive information transmitted online, as well as run our own secure server network to ensure your information is protected offline as well.

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