Fiscal and business financial statements

There are two types of financial statements, fiscal financial statements and business financial statements.

The fiscal financial statements must meet the requirements of the tax authorities. These financial statements are filed with the Chamber of Commerce. This shows the company's fiscal profit.

And you have the financial statements. This is mainly used when applying for financing or when selling a business. The financial statements provide a better picture of the financial situation. Indeed, tax laws and regulations are not taken into account.

An example: you have business premises. On the balance sheet, the value of this property is 300,000 euros (tax). The market value of the property is 475,000 (economic). In the financial statements, this is therefore a more positive and realistic scenario.

Failure to file financial statements has consequences for creditworthiness

The deadlines for filing depend on the type of legal person. Everything about this one deposit terms can be found on the Chamber of Commerce website. Are you not filing the financial statements when you should? Then this has adverse consequences.

One of these adverse consequences is that you risk a fine of thousands of euros. This penalty reduces your company's credit worthiness. It is then more difficult to get a loan. Are you unable to file the financial statements on time? Request a delay!

What does a financier look for in the financial statements?

Every financier looks at financial statements differently. We can only speak for ourselves. Our analysts do not work according to a fixed checklist cast in concrete. With each request, we look at the options with a fresh look.

Basically, liquidity is always looked at. This way, we can see to what extent the company can meet payment obligations. It is possible that the liquidity is on the low side, but we can still give you financing. This varies by funding goal and situation. That is why it is so difficult to give an unambiguous answer to the question “what exactly do we pay attention to?” To clarify, we are tackling two funding goals; inventory financing and growth finance.

Inventory financing

When you want to finance your inventory, we mainly look at the turnaround time, but also at the overall turnover.

It is also important whether it concerns additional stock or a completely new range. With a new range, there is little or no insight into what the turnaround time is. At that time, we also include other aspects to test portability.

Growth Financing

Inventory financing can be part of growth financing. Growth financing therefore looks at the company much more broadly. What are the expenditures, do we see patterns in that? We are also looking at the current stock. Or to the progress of orders and associated turnover.

For growth financing, we also look at growth potential. Is turnover expected to increase and what are the indications? Is it about staff growth or does storage space or work space have to be rented. Based on these elements, the analysis is made. It will then be determined whether the funding can be paid out.

These are just two examples that show how our analysts rate. Want to know more about a business loan with Swishfund? Then you can always contact us. Wondering what you can borrow? You can calculate that here!

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