Bank loan file preparation for SMEs in Cameroon
A bank does not only judge the amount requested. A credit analyst wants to know whether the company can repay, with what security and on the basis of which documents. Pharaon Advisory prepares your credit file so that it answers these questions, and helps you rework it after a refusal. We support SMEs in Douala, Cameroon and the CEMAC zone.
Why a credit request is refused
A file is judged insufficient when it does not let the analyst conclude. The most frequent reasons are bank-specific:
- Repayment capacity is not shown from the company’s actual cash flows.
- The loan instalments do not appear in the cash plan.
- The security offered is poorly presented, or out of proportion with the amount requested.
- Statements, financial accounts and outstanding commitments do not match each other.
- The funding need is not tied to a precise, quantified use.
- Legal, tax or administrative documents are incomplete or out of date.
Credit institutions assess repayment capacity from the financial information available and, for a recent company, from forecast accounts. A more general file, addressed to any type of financier, is prepared with our financing file structuring.
The documents generally expected
The exact documents depend on each institution, the type of credit and the amount. They fall into five categories.
| Category | Examples |
|---|---|
| Company | Name, legal form, trade register, tax ID, articles of association, managers and partners |
| Financial position | Financial statements, income statements, bank statements, existing loans, debts and instalments |
| Project | Description, purpose, amount requested, investment plan, timetable, quotes or pro forma invoices, contracts or orders |
| Forecasts | Business plan, forecast income statement, cash plan, financing plan, assumptions |
| Security | Security offered, presented clearly, without promising an outcome that depends on the bank’s decision |
How to present your repayment capacity
It is the central point of a bank file. It must show that the company’s revenue covers operating costs, loan instalments and cash needs. To present it clearly:
- Justify the forecast revenue.
- Detail fixed and variable costs and present margins.
- Include the loan instalments in the cash plan.
- Anticipate periods of cash tension and the measures in case of deviation.
A credible file does not try to show optimistic numbers: it shows that the assumptions are realistic and documented.
Reworking a file after a refusal
A refusal does not mean the project is not viable. It often reveals an insufficiently structured file. We take the available elements, identify the weaknesses, including those the bank did not detail, and prepare a new presentation. We do not presume the bank’s reasons: we work on what the file can actually demonstrate.
Our 4-step method
- Scoping the needProject, amount, term, use of funds and type of institution targeted.
- Review of the file and documentsFinancial statements, statements, quotes, contracts, legal information: gaps and inconsistencies.
- Repayment capacity and securityRepayment capacity table, cash plan including instalments, presentation of security.
- Final file and preparation for the discussionFormatting for the credit analyst and preparation for questions: origin of the numbers, growth, security, use of funds.
For which types of credit?
- Equipment or investment: the emphasis is on return on investment.
- Inventory, raw materials or working capital: the emphasis is on the operating cycle and cash flows.
- Growth, expansion, construction work, production or export.
- Start-up or acquisition.
Our track record
The firm reports 100 bn FCFA secured for its clients. Several of our engagements are publicly documented:
- Our case studies
- Article: can a business grow sustainably without structuring itself?
- DBS TV case study (PDF)
What we do not do
Frequently asked questions
Which documents must I provide for a loan request?
They vary with the bank and the type of credit, but generally include the company’s legal information, available financial statements, bank statements, project information, the business plan, forecasts and investment supporting documents.
Can you help if my request has already been refused?
Yes. We analyse the available elements, identify the weaknesses of the file and help you strengthen it before a new presentation. A refusal does not necessarily mean the project is not viable.
How do I present my repayment capacity?
You need to justify forecast revenue, detail costs, present margins, include the instalments in the cash plan and show the consistency between expected income and repayments.
Is a business plan compulsory?
In most company financing requests, a business plan or a structured project note is strongly recommended. See our business plan and forecast page.
How long does preparing a file take?
It depends on the complexity of the project, the amount, the type of financing and the availability of documents. After the initial analysis we give you a schedule.
Do you guarantee the bank’s approval?
No. Pharaon Advisory is not a bank and does not guarantee that a loan will be obtained. We help you prepare a clearer, more consistent and more professional file. The decision rests with the bank.
Submit my file
Do you have a project to finance, a file to rework or numbers to make reliable? Send us the first information about your company and your need. Our team analyses your situation and tells you the next steps.