In an ever-evolving financial landscape, small to medium-sized enterprise (SME) owners must stay abreast of changing credit requirements to secure the necessary funding for growth and operational needs. Traditionally, lenders have relied heavily on balance sheets, profit and loss statements, and cashflow forecasts to assess the creditworthiness of applicants. However, a significant shift is underway, with banks and financial institutions increasingly turning to bank statements as a primary tool for evaluating creditworthiness for cashflow and equipment funding. This change offers both challenges and opportunities for SME owners, and EDCORP Finance Solutions is here to guide you through it.

Understanding the Shift

In the past, balance sheets, profit and loss statements, and cashflow projections were the cornerstones of credit assessment. These documents provided a snapshot of an SME’s financial health, but they also required considerable time and expertise to prepare. As lenders seek more efficient and real-time insights into an applicant’s financial behaviour, bank statements have emerged as a vital resource.

Why Bank Statements?

1. Real-Time Financial Insight: Bank statements offer a real-time view of an SME’s cash inflows and outflows. This provides lenders with an accurate picture of day-to-day financial operations, helping them assess an applicant’s ability to manage cash effectively.
2. Transaction History: By analysing transaction histories, lenders can identify patterns in spending, income sources, and financial stability. This allows them to gauge the consistency and reliability of cashflows, which is crucial for both cashflow and equipment funding.
3. Reduced Complexity: Preparing balance sheets and financial statements can be complex and time-consuming, especially for busy SME owners. Bank statements, on the other hand, are straightforward and readily available, reducing the administrative burden on applicants.

How EDCORP Finance Solutions Makes It Easier

At EDCORP Finance Solutions, we understand that navigating these changing credit requirements can be daunting. That’s why we are committed to simplifying the process and leveraging our expertise to ensure that SME owners can focus on their core business activities.

1. Expert Guidance: Our team of experienced finance brokers is well-versed in the latest trends and requirements in the commercial funding market. We stay updated on lender preferences and credit assessment criteria, ensuring that you are always well-informed and prepared.
2. Streamlined Documentation: We help you gather and organise the necessary documentation, including bank statements, to present a compelling case to lenders. Our goal is to make the application process as smooth and efficient as possible, saving you valuable time and effort.
3. Tailored Solutions: Every SME is unique, and so are its financial needs. We take the time to understand your business and financial goals, offering personalised advice and solutions that align with your specific situation. Whether you’re seeking cashflow funding or equipment finance, we have the knowledge and network to connect you with the right lender.
4. Access to a Wide Network: With our extensive network of funders, we provide access to a diverse range of financial products. This means you have more options and can secure the best possible terms and rates for your funding needs.

Focus on What Matters Most

By entrusting your financing needs to EDCORP Finance Solutions, you can concentrate on what truly matters – growing and managing your business. We handle the intricacies of the credit application process, from documentation to negotiations, ensuring that you have the support and resources you need to succeed.

The shift towards using bank statements for credit assessment marks a significant change in the financial landscape for SMEs. While this change can streamline the application process, it also requires SME owners to adapt to new requirements. EDCORP Finance Solutions is your trusted partner in this journey, providing expert guidance, streamlined documentation, and access to a wide network of funders. Let us help you navigate these changes and secure the funding you need to drive your business forward.

Call Chris McCall or email chris.mccall@edcorpfinancesolutions.com