Lender Package Preparation Checklist
A systematic checklist for CFOs and deal teams assembling a complete lender package for term loans, revolving credit facilities, unitranche debt, or other senior financing.
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What Lenders Need and Why Package Quality Matters
Lenders — whether bank credit officers, direct lending funds, or unitranche providers — evaluate debt financings through a defined credit analysis framework. They are assessing three things: the ability of the business to service the debt from operating cash flow, the quality and coverage of collateral securing the loan, and the integrity and credibility of management. A well-prepared lender package addresses all three dimensions proactively.
The quality of your lender package affects both the speed of credit approval and the terms you receive. Lenders who receive organized, complete, and consistent materials can move through credit analysis faster, ask fewer clarifying questions, and present a cleaner credit case to their credit committees. Disorganized or incomplete packages create friction, extend timelines, and signal operational immaturity — sometimes leading to more conservative terms or outright declines.
This checklist covers the eight core components of a complete lender package. InvestmentBank.com lender package preparation software helps deal teams track completion, organize documents, and prepare structured deliverables for credit review. We are a software platform — not a financing arranger or placement agent.
Historical Financial Documentation
Audited Financial Statements (3 Years)
CPA-audited income statements, balance sheets, and cash flow statements for the three most recent fiscal years. Bank lenders typically require audited financials for any credit above $5–10 million.
Interim Financial Statements (YTD)
Current year-to-date financials through the most recent month end, with prior-year comparison. Include management-prepared statements if audit is not yet complete.
Monthly P&L Detail (24 Months)
Month-by-month income statement for the trailing 24 months. Lenders use monthly detail to assess seasonality, revenue consistency, and margin stability.
Tax Returns (3 Years)
Federal and state income tax returns for the three most recent years. Lenders use tax returns to cross-reference reported income and assess tax liability exposure.
Accounts Receivable Aging Schedule
Current AR aging by customer, including days outstanding, concentration, and any contested or at-risk balances.
Accounts Payable Aging Schedule
Current AP aging showing amounts owed by vendor and days outstanding, particularly important for asset-based lending (ABL) facilities.
Inventory Detailed Schedule (if applicable)
Current inventory by category (raw materials, WIP, finished goods) with age, turnover, and any obsolescence reserves. Required for ABL and manufacturing credit facilities.
EBITDA Adjustments & Earnings Quality
EBITDA Bridge from Net Income
A line-by-line reconciliation from GAAP net income to reported EBITDA, with each addback (D&A, interest, taxes) clearly identified and sourced to the financial statements.
Adjusted EBITDA Reconciliation
Management adjustments to EBITDA — one-time items, owner compensation normalization, non-recurring expenses, pro forma synergies — each with a written explanation and dollar amount. Every adjustment should be supportable with documentation.
Run-Rate Revenue & EBITDA Support
If claiming a run-rate above trailing twelve months (TTM), provide the underlying monthly data and contract-level support for the run-rate claim.
Owner/Management Compensation Normalization
Detailed analysis of above-market or below-market owner compensation adjustments, supported by industry comp data or replacement cost analysis.
Non-Recurring Item Support File
For each non-recurring adjustment, a support file with: description of the item, why it is non-recurring, dollar amount, and GL transaction detail.
Collateral Documentation
Real Property Schedule & Appraisals
Schedule of owned real estate with legal descriptions, current appraisals (within 12 months), and any existing liens or encumbrances.
Equipment List & Appraisals
Detailed fixed-asset schedule with description, serial numbers, original cost, book value, and fair market appraisals for significant equipment.
IP Asset Schedule
List of patents, trademarks, trade secrets, and software with ownership confirmation and any licensing or encumbrances.
UCC Lien Search Results
UCC-1 lien search results from all relevant jurisdictions showing existing security interests that will need to be released or subordinated.
Collateral Coverage Analysis
Lender-format collateral coverage analysis showing estimated forced-liquidation value vs. proposed loan amount by collateral category.
Insurance Certificates
Current certificates of insurance for property, liability, key-man, and other relevant coverage, confirming lender as additional insured where required.
Management Presentation for Lenders
Company Overview Section
Business description, history, business model, revenue streams, and geographic footprint — typically 5–10 slides.
Management Team Bios
Backgrounds of senior leadership with relevant operational and financial experience. Lenders want to assess management credibility and depth.
Market & Competitive Position
Market overview, competitive landscape, and the company's differentiated position and barriers to entry.
Financial Performance Summary
3-year historical income statement summary, TTM performance, and YTD vs. prior year comparison with narrative explaining key variances.
Projections Narrative
Written narrative explaining the key assumptions behind the financial projections — revenue drivers, cost structure, working capital, and capex requirements.
Debt Repayment & Coverage Analysis
Pro forma debt service coverage ratio (DSCR) analysis showing projected EBITDA vs. required debt service under base and downside scenarios.
Debt Schedule, Projections & Covenant Analysis
Current Debt Schedule
All existing debt obligations: lender, principal balance, interest rate, maturity, amortization schedule, and security/collateral. Include capitalized leases and subordinated debt.
Pro Forma Debt Schedule
Post-transaction debt schedule showing proposed new facility, repayment of existing debt, pro forma leverage ratio, and amortization profile.
3–5 Year Financial Projections (Integrated)
Fully integrated 3-statement projections (IS, BS, CF) with documented assumptions for revenue growth, margin, capex, and working capital. Include base case and downside stress test.
Leverage & Coverage Ratio Analysis
Historical and projected Total Debt / EBITDA, Senior Debt / EBITDA, EBITDA / Interest Expense, and DSCR ratios, presented in a lender-friendly format.
Proposed Covenant Framework
Management's proposed financial maintenance covenants (leverage, coverage, minimum liquidity) with cushion analysis showing headroom under base and downside scenarios.
Covenant Sensitivity Analysis
Scenario analysis showing which scenarios trigger covenant violations and management's planned response to each scenario.
QoE Report (if completed)
Quality of Earnings report prepared by an independent accounting firm confirming EBITDA adjustments, revenue quality, and working capital normalization.
Lender Package Preparation Workflow
- 1
Gather Financials
Collect 3 years of audited financials, tax returns, and interim statements.
- 2
Build EBITDA Bridge
Reconcile reported EBITDA with all management adjustments, fully documented.
- 3
Prepare Projections
Build integrated 3-statement projections with leverage and coverage analysis.
- 4
Organize Collateral
Document and appraise collateral; clear existing liens with UCC searches.
- 5
Draft Presentation
Prepare the management presentation with business overview, market, and debt analysis.
- 6
Assemble Package
Organize the complete lender package in a structured data room with consistent indexing.
- 7
Credit Committee Review
Prepare a credit committee-ready summary addressing key credit questions proactively.
Frequently asked questions
What is a debt service coverage ratio (DSCR) and why do lenders focus on it?
DSCR measures the company's ability to service its debt from operating cash flow. It is calculated as EBITDA (or free cash flow) divided by annual debt service (principal + interest). A DSCR above 1.25x is generally the minimum threshold for senior lenders; most target 1.5x or higher. Lenders focus on DSCR because it directly measures credit repayment risk.
Do all lenders require a QoE report?
Not always, but it is increasingly common in leveraged buyout and refinancing transactions above $10–15 million. Private equity sponsors almost always require a QoE report before closing. For smaller transactions or bank lines of credit, a detailed management-prepared EBITDA bridge may be sufficient, but lenders may commission their own accountant review.
What is the difference between a term loan and a revolving credit facility?
A term loan provides a lump sum of capital repaid over a fixed schedule (typically 5–7 years). A revolving credit facility (revolver) provides a borrowing line the company can draw, repay, and re-draw as needed — similar to a corporate credit card. Most leveraged credit packages include both: a term loan for acquisition or growth capital and a revolver for working capital.
How does InvestmentBank.com help with lender package preparation?
InvestmentBank.com provides workflow software for organizing lender package documents, tracking completion status, preparing structured financial schedules, and managing the credit process. Our AI-assisted tools can help draft management presentation sections and summarize financial data for internal review. All outputs require review by qualified financial professionals.
Build Your Lender Package Faster
Track every checklist item, organize supporting documents, and prepare credit committee-ready materials with InvestmentBank.com lender package preparation software.
InvestmentBank.com does not arrange financing, broker loans, or act as a placement agent.