This includes

• Name,domicile and ownership of the company
• Names of shareholders and directors
• Nominal and paid up capital
• Legal status
• Line of business (full description of the business activities)
• Brief history of the company highlighting major developments in the methods of trade, product mix and other factors central to the performance of the company.

This should include the following:

• Amount
• Type of credit facility
• Purpose of facility (details of the end –use of the facility requested)
• Tenor of facility
• Schedule of draw downs.

The company should highlight key industry players as well as provide comparison of its performance and standing in the industry compared with its competitors. Information should also be provided on the following:
The company’s competitive advantages vis-à-vis the other players giving details of the critical success factors:

• List of major competitors and their market share
• Market share of the company
• List of major buyers with details of the selling terms
• List of major suppliers with details of the terms of purchase
• Key industry risks as well as how the company mitigates them
• Description of the trade cycle of the business
• Seasonality of the operation giving details of peak and slack seasons.

The company is required to provide:

• A detailed organization chart
• Information on the key personnel (of the rank of departmental heads and above) which should include, the name ,age, educational background, years of experience, line of operations and ports held present position and description of duties and responsibilities

Details of the planning, controlling and monitoring systems which have been put in place have to given.

Financial statements contain a wealth of information. If properly analyzed and interpreted, they can provide valuable insights into a firm’s performance and position. Financial analysis determines the significant operating and financial characteristics of a firm form accounting data and financial statements. The goal of such analysis is to determine the efficiency and performance of the firm’s management as reflected in the financial records and reports.
Analysis can be done through:
A. Ratio Analysis
B. Trend analysis
C. Reading of notes to accounts and other information
A. RATIO ANALYSIS:
Ratio analysis is the science of deriving certain conclusions by a study of such ratios.
Some uses of ratios are:

• To compare different companies in the same industry.
• To compare different industries.
• To compare performance in different time periods.

The ratios to be looked into are:

• Liquidity ratio
• Profitability ratio
• Efficiency ratio
• Leverage ratio

B. TREND ANALYSIS:
Trend analysis can be through:
a. Intra firm comparison that is review of the trend of the ratios over the years within the firm and
b. Inter firm comparison.
The trend analysis may even be related to absolute figures, such as growth in rates, net worth etc.

C. NOTES TO ACCOUNTS
Financial statements are dressed - up accounts to give the best possible performance outlook of a company. Careful reading and analysis of the notes on accounts, one can gauge the policies of the management, performance of the company, and its future planning.
These can be obtained from:
These would include:

• The notes to accounts
• Directors report
• Auditor’s report
• Other data published in the annual report.

List of properties to be pledged

• Value of each property (as supported by a professional valuation) ;
• Whether the property is being used to secure loans from another lender ; if so details of commitments are needed ;
• Location of the property proposed as security.

The bank requires full details of the present credit facilities being enjoyed at the moment. In particular:

• Types of facilities
• Amount approved
• Date approved
• Outstanding balance
• Repayment terms
• Due date
• Securities provided
• Ability of the company to meet its current borrowing obligations.

Last the most important thing is CIBIL Score. CIBIL Score plays a critical role in the loan approval process. Your credit score gives loan providers an indication of your capability to pay back a loan. Every lender that uses the Cibil score has its own benchmark of what constitutes a “good score”.