Make a Statement

What to do if your bank requires audited financial statements
Magazine Contributor
1 min read

This story appears in the September 2001 issue of Entrepreneur. Subscribe »

Q: We recently applied for a larger line with our bank. The loan was approved with a number of conditions, one of which was an annual audited financial statement. I spoke with my accountant, and she tells me issuing an audited statement is extremely expensive. What are my options?

A: Audited statements require a full review of your books and records to give a clear picture of your company's financial condition. Your lender uses these statements to determine the risk involved in raising your line of credit.

I would discuss the prohibitive cost with your banker to see whether the bank would be willing to waive the condition. If your banker remains firm on the , you might want to shop around for a less expensive accountant. But remember, bankers like continuity, so be sure to get the bank's blessing before switching to a different accounting firm.


Write to Doug Hood, founder and president of Rainmaker Capital Corp, at doughood@rainmakercapital.com

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