Dominion Strategic Holdings LLC / Services
Institutional Services
Financial Projections for a Bank or SBA Loan
Lender projections are a three-statement forecast an underwriter can test: linked statements, visible assumptions, a debt schedule that matches the loan being requested, and a downside case that still services the debt. A spreadsheet of hopeful revenue is not a projection, and underwriters know the difference immediately.
What an underwriter is actually checking
Not your revenue growth. They are checking debt service coverage — whether the cash the business produces covers the payment, with room to spare, in a bad year rather than a good one.
They also check whether the three statements tie. If the balance sheet does not balance, or the cash flow statement is typed in rather than derived, the file loses credibility before the numbers are even read.
What you receive
- Three-statement projection, monthly for year one and annual thereafter
- Debt schedule modelling the actual loan terms you are requesting
- Debt service coverage ratio calculated for each period
- Base and downside cases, with the downside still tested against coverage
- Working capital build so growth is funded, not assumed
- Written commentary an underwriter can read alongside the file
The mistakes that get files sent back
No downside case. A single optimistic scenario reads as unexamined. Underwriters want to see what happens if revenue comes in twenty percent light.
A debt schedule that does not match the ask. The projection has to model the actual loan — amount, rate, term, amortisation.
Working capital ignored. Growth consumes cash. A forecast that grows revenue without funding receivables and inventory is not credible.
Assumptions buried in formulas. If the reviewer cannot find and change an assumption, they cannot test it, so they discount the whole model.
Who this is for
- Businesses applying for an SBA 7(a) or 504 loan
- Companies refinancing existing debt
- Owners requesting a line of credit or equipment financing
- Anyone whose lender asked for projections and gave no template
Turnaround. Lender projection packages are typically delivered in 4 to 8 days.
Fees are quoted per engagement and are not published. Inquire and you will receive a written proposal with a fixed fee, a fixed scope and a delivery date, at no charge.
Frequently asked questions
- What financial projections does a bank want for a loan?
- A three-statement forecast — income statement, balance sheet and cash flow, linked — with a debt schedule for the loan requested, a debt service coverage calculation for each period, and at least one downside scenario.
- What is debt service coverage ratio?
- Cash available to service debt divided by the debt payments due. Lenders generally want to see meaningful headroom above 1.0, and they want to see it hold in a bad year, not just a good one.
- How many years should loan projections cover?
- Usually three to five years, with the first year monthly. Monthly detail early is what shows the lender you understand your own cash cycle.
- How long does it take to prepare loan projections?
- Four to eight days, depending on the condition of your historical records. If your books need cleanup first we will tell you before quoting.
- What does it cost?
- Quoted per engagement. Inquire and you will receive a written proposal with a fixed fee and a delivery date, prepared at no charge.
Related services
Request a proposal
Tell us what decision the analysis needs to support. You will receive a written proposal with a fixed fee, a fixed scope and a delivery date — prepared at no charge and with no obligation.
787-420-4655 · daniel.torrens@dominionstrategicholdings.com · San Juan, Puerto Rico