Guides

Presenting a financial projection to the bank

Updated November 9, 2026

A lender, whether a bank, an institution such as BDC or an investor, doesn't fund an idea: it funds numbers it can check. Here is what a solid financing application usually contains and how to build the financial projection that goes with it.

What most lenders ask for

  • A one-page summary: the need, the amount requested, the use of funds and the expected repayment or return.
  • The business and the team: the founders' relevant experience.
  • Market and competition: size, target customers, positioning and pricing.
  • The marketing and sales plan: channels, acquisition costs and sales cycle.
  • Operations: production, suppliers, location and hiring.
  • Financial projections over 3 years, often monthly in the first year: income statement, cash budget and balance sheet.

Assumptions that can be checked

Every line of the financial projection rests on a written assumption: where the number comes from and how it is calculated. A good assumption is sourced (a quote, an agreement, a comparable or past results), quantified, cautious and consistent with the others: hiring follows sales, and production capacity is enough.

A cautious scenario

A lender will almost always ask what happens if sales come in lower than planned. Show it before they ask: a cautious scenario and a sensitivity analysis, for example with 20% lower sales, and the month when cash is at its lowest.

Sources and uses of funds

Sources (owner's equity, loans, grants, capital) must equal uses (capital assets, working capital, start-up costs). This table shows the lender that every dollar requested has a purpose, and that you planned a cash cushion.

Owner's equity$40,000
Term loan$120,000
Grant$40,000
Sources$200,000
Capital assets$110,000
Working capital$60,000
Start-up costs$30,000
Uses$200,000
Example sources and uses, fictional numbers: every dollar requested has a use, and both columns have the same total.

Mistakes that get an application turned down

  • Hockey-stick growth with nothing to explain it.
  • Forgetting payroll taxes, sales taxes or how long customers take to pay.
  • Counting a grant as a sale.
  • Having no cash cushion.

With Orbinance

Orbinance builds the financial projection over 1 to 5 years, with a written assumption for every line, and produces the income statement, balance sheet and cash flows under ASPE, balanced on every calculation, plus the monthly cash budget.

Export to PDF or Excel, in French or English, or send your banker a read-only link. The Pro plan adds scenarios and a complete business plan PDF with your logo.

Try free for 14 days

Sources

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