3 Year Financial Forecast
"I have been insane on the subject of moneymaking all my life."
- Cornelius Vanderbilt
3-Year Financial Forecast - n. 1. A forecast of the expected financial position, the results of operations, and cash flows of a business based on expected conditions over a defined three-year period. 2. Estimates of the future financial performance of a business over a three-year space of time. 3. A formally-organized prediction of the financial workings and results of a business during a set three-year interval.
Preparing accurate financial projections could be one of the most important things you ever do for your business. Estimating expenses and revenue is an essential element of successful business planning and forms the basis for budgeting activities and predicting the future financing needs of your business. Pro forma financial statements for three-year time periods are regularly prepared to satisfy the requirements of most banks or equity investors when a business seeks financing. Both venture capitalists and angel investors also require pro forma financial statements.
We offer a comprehensive set of projected financial statements which we call our 3-Year Financial Forecast. These projected financial statements - often referred to as pro forma financial statements because they are prepared in advance of an envent in order to show what would happen as a result of the actual occurrence of such event - help forecast future financial results. Pro forma financial statements are prepared in advance of a planned transaction, such as a change in the capital structure of a business like the incurrence of new debt. The pro forma models the anticipated results of the transaction, with particular emphasis on the projected cash flows , net revenues, etc. Consequently, pro forma financial statements, like our 3-Year Financial Forecast, summarize the projected future status of your business.
Our 3-Year Financial Forecasts are typically prepared to reflect the impact on, and operations of, a business after a debt-based capital infusion into such business. Our 3-Year Financial Forecast includes the following items:
- Beginning and Desired Funds
- Fixed Overhead
- Cahs-Flow Timing
- Cash-Flow Statement - 3 Years
- Year-End Summaries - 3 Years
- Amortization Schedule - 3 Years
- Projected Sales Forecast
- Income Statement - 3 Years
- Balance Sheet - 3 Years
- Breakeven Analysis
- Financial Ratios
Such information is presented in a clear, lender-ready format. Our 3-Year Financial Forecast isn't merely a prediction, it articulates, in dollars, why a business is viable and, as such, is essential to any loan application.