Project Management

Read Your Financial Statements Like A Banker

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Executive Summary

Let's face it - financial statements aren't the most fascinating things to read. Unless, that is, you're a banker. Your balance sheet and income statement tell a banker more about your business than you may think. Whether you're applying for a new loan, renewing a line of credit, or submitting your financials because your loan agreement requires it, you need to know what goes on in your banker's head when reading your financial statements. Fundamentally, a lender cares about three things: Performance (including profitability and good management practices); Liquidity; Leverage.

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