Preparing For Financing
Thorough preparation is essential to successful debt or equity
financings, including commercial loans. First impressions are very
important. Being well prepared will demonstrate to a potential
financing source that you are credible, organized and attentive to
the detail that often makes the difference between success and

Business Plan

A well-conceived business plan is the foundation of a successful
business. The business plan is not only the blueprint for
management, but also it is the entree to financing sources. Rarely
will credible financing sources meet with management before
having reviewed the business plan. Even if management has
good ideas, if the business plan does not demonstrate that
management has a clear and achievable vision, the financing
source will have little or no interest in the concept.

Legal Audit

If you are planning a financing transaction, it would be advisable
to have a legal audit performed. The goal of a legal audit is to
identify weaknesses and problem areas that can be resolved
before your prospective financier embarks on its due diligence

Due Diligence File

In addition, the auditor can compile a due diligence file for
prospective financing sources. The file may include your
organization documents, business plan, management
biographies, financial statements (including projections and
budgets), recent tax returns and material contracts.


It is essential that a business seeking to raise capital have
financial statements prepared in accordance with generally
accepted accounting principles. Also, it is becoming increasingly
important that non-public companies seeking financing meet many
of the accounting requirements applicable to public companies.
Dedicated to
effective and
A well
plan and a
legal audit
essential to
most debt
or equity
321 Cook Street, Denver, Colorado 80206
Telephone 303.322.4845
Facsimile 303.322.4815