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Getting funding for loans, equity and grants requires some documentation and information from the funding applicant.

Lending related documents, including the Business plan and or Feasibility Studies which involves research, audited financial statements, current and projected cashflow, valuation report on collateral and other documents are used by the lender in evaluating creditworthiness of a prospective borrower. Proper documentation is important in lending because the quality of documentation in the loan portfolio is directly related to credit quality ratings assigned by the Central Bank examiners. For example, a loan with overvalued collateral is a potentially weak credit which could makes it impossible to recover the money in the event of default or insolvency.

Documents such as audited financial accounts help the lenders track the historical financial performance of a business and ensure that the company can repay the loan as and when due. Feasibility Studies and Business plans based on research analyse the viability of a business and how it be operated. Other documents such as CAC registration, tax clearance and annual returns prove that the business has fulfilled all statutory requirements for registering and operating the business. Another document required for funding very large-scale projects or businesses is the Environmental impact assessment (EIA) report which shows the impact of the project/business on the environment and people.

See a typical checklist of required loan documents here.

Other types of funding namely equity and grants also require the documents required by lenders.

Many prospective funding applicants find the collation of the required funding documentation time consuming and tasking for many reasons. The documents are often prepared by different types of professionals and finding the right professionals, monitoring and coordinating them to deliver the right type of documentation at the right time is not easy. However, our company Highnet Resources can take all the stress out of the many steps involved in preparing the documents by finding and coordinating all the professionals you need to get the required funding documentation.