Question: Do Banks Require Projected Financial Statements?
Purpose: The purpose of this exercise is to explore the practical importance and use of projected financial statements in the banking business.
Instructions:
Visit with two local bankers and seek answers to the questions that follow. Record the answers you receive, and report your findings to the class.
• Does your bank require projected financial statements as part of a business loan application?
• How does your bank use projected financial statements when they are part of a business loan application?
• What special advice do you give potential business borrowers in preparing projected financial statements?