Proforma - Projection of 10 year plan

[Alisha Decoteau]

If one has a private lender and they are asking for  a 10 year plan of the financials, who provides this information?   Buyers Broker or Investor?  

Best,

AD

[Brian Burke]

The borrower would be providing this.  What the lender wants to see is what the projected performance is looking into the future.  But behind the scenes, what the lender really wants to know is two things.

1. Do you know the numbers
2. Do you know how to put together a projection

#2 is a tricky one, because the lender is not only looking at whether you can put this together, but they are looking at your assumptions.  In other words, are your projections too optimistic?  If you don't know the numbers or can't put together a plausible forecast, the lender is likely to decline the loan, thinking that they would be loaning to someone that is unlikely to execute properly.