How do I prepare a food processor’s customer contracts for a financing request?

A lender uses your contracts to judge how steady your revenue is. Start by gathering them all, signed and current, along with amendments and any informal arrangements that are only in emails. Then prepare a summary table: customer, product, volume, pricing basis, payment terms, start and renewal dates and notice needed to end the deal.

Look for concentration. If a handful of grocery or food-service customers drive most sales, say so plainly and explain how long you have supplied them and how the relationship works. Note any contracts that permit a customer to leave on short notice, change specifications, or return product. A lender will find them anyway, so it is better to explain them.

Review confidentiality. Some agreements restrict sharing with outsiders, so ask your lawyer before sending copies. Include records of past delivery and quality performance, since a customer’s trust in your product supports the contract. Your accountant can tie the summary to the sales in your statements. Finally, prepare answers to questions about what would happen if your largest customer left, and how quickly you could replace that volume with others.

Key takeaways

• Gather every contract and amendment, and note informal arrangements that only exist in emails.
• Build a summary table of terms, volumes, renewals and notice to end each deal.
• Ask your lawyer whether any agreement limits sharing it with a lender.
• Be ready to explain what you would do if your largest customer left.