Okay---so I thought I was in the final phases of my loan. They told me that I would know for sure if I got it by yesterday. Now the first of the month is approaching and I'm gong to owe rent on a place that I don't even have close to being up and running because my loan is taking so bleeping long. Woah-------okay-------I obviously needed to vent!!!
Anywho, the lady handleing my loan just asked me for a balance sheet. So I sent her my current assets, fixed assets, liabilities (none since I'm not open yet) and well that was that. She said that I did it wrong. I need to include future fixtures, furniture, pots, pans, etc. I'm so confused. What category would that go under? If someone is experienced with this and is willing to help me out I would be more than grateful.
My advice is PM indydebi, she is very smart with this kind of thing.
You would include it in the fixed assets portion that you stated. They are looking for everything including property and equipment that adds value to your business. For your own sanity, you might not want to list really small items like things costing under $20 or so unless they are worth more now or you own a ton of them. List all baking equipment, business furniture, computers, printers, software purchased. Certainly list anything that your business pays property tax on. List whether or not someone owes money to your business and conversely all the money your business owes as well. You may want to invest in a QuickBooks (or at least Quicken) accounting software package. Its easy and user-friendly.
If the application didn't specifially state that future assets are to be included, I would make sure that you include the word "PROJECTED" at the top of the balance sheet if you're including them. I would write it in capital letters across the top of the form and then highlight it.
I would probably also note somewhere at the bottom that I was instructed by [insert name] on [date] at the bank to include future assets in this balance sheet. There are a few reasons for this.
First, if someone else at the bank or loan company has a different version of what should be included, you won't be on the hook for including assets that you don't own yet.
Second, if several years down the road your loan is up for renewal or review and the bank requests updated information and there is a major mismatch between your prior application and the updated information, there could be some questions to answer. At least if the balance sheet says projected across the top you can say that you planned to buy certain equipment, but didn't for whatever reason.
I agree with taxnerd. Later down the road you don't want someone to think you were being dishonest on your application.
I agree that you should include on the sheet the name of the person who requested this projected information.
Go to www.SCORE.ORG and they have a template for a balance sheet that you can use.
Oh my goodness-----I didn't get any notifications but I did go to SCORE.org and did that one with a few modifications. It turned out really well and I did end up getting my loan two days ago. Finally!! I'm so excited to get everything moving. Thanks for all your help!!