What business records should a sign shop owner show a lender?
Show financial statements, tax filings, an aged receivables list and job costing records that prove margins on typical sign jobs. Add an inventory list, an equipment register and a record of customer deposits and unfinished work. Lenders want to see how the shop earns and collects.
Begin with the basics: recent statements, bank records and the details of existing debts. Then add what makes a sign shop different. Job costing by type, such as vehicle wraps, channel letters or large-format print, shows where profit comes from. A lender who sees only a total cannot tell which work is carrying the shop.
Next, show the working pieces. Provide a list of materials on hand, with notes on what is slow-moving. Include an equipment register with ownership details, since vinyl cutters, printers and trucks may secure a loan. List receivables by age and name any customers who pay late. Explain the deposits you hold and the jobs they relate to. Be ready to explain seasonal swings in orders and cash. A short, honest note on slow stretches shows the lender that you understand your own shop.
Finally, be ready to explain the pipeline: repeat customers, contracts, and the seasons when work slows. A short written summary of the shop’s history and plans helps. Your accountant can prepare the package, and your lender can tell you exactly which documents they need. Keep everything organized in one folder so the lender can follow it without chasing you.
Key takeaways
- Show job costing by type of work, not only total revenue.
- Include inventory, an equipment register and aged receivables.
- Explain deposits and unfinished jobs, so they are not mistaken for income.
- Be ready to explain seasonal swings in orders and cash.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to prepare a winning business loan proposal
- 02Business Development Bank of CanadaGovernmentHow to get a business loan in Canada
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