Presenting Small Business Financial Statements to a Lender

The number of retired individuals entering the exciting world of entrepreneurship is at an all-time record high. Many retired people starting their own businesses are now doing so purely as a matter of economics: having lost much of their retirement investments they feel compelled to earn an income but either cannot, or do not wish to go back to working for someone else.

Like most people entering business, even seniors may need to raise start-up cash. But rather than dip even further into retirement funds, you should consider a small business loan. You could end up paying taxes or other penalties for early withdrawal from 401k plans, etc., but interest paid on a business loan might be tax deductible on IRS Form Schedule C.

To increase your chances of securing a loan, you should prepare a business plan and be ready to show a personal financial statement to lenders. If you are already in business, you should submit a full set of financial statements to the lender. These include a recent balance sheet, a profit and loss statement, a statement of cash flows, and notes to the financial statements.

If you are uncertain as to what these financial documents are, "Presenting Small Business Financial Statements to a Lender" offers information on the types of financial statements lenders may require.