Projections
Three-Year Financial Projections
Projections a lender can test — every number traceable to a stated assumption.
The short answer
Financial projections for a loan application are forward-looking statements — typically a three-year profit and loss, cash flow statement and balance sheet, with year one in monthly detail — supported by a written assumption set. Lenders use them to test debt service coverage. OCS builds projections from your actual cost structure and market data rather than generic templates.
Reviewed by Joe Maldonado, OCS founder and former commercial banker with more than 20 years of commercial transaction experience.
Assumption documentation
A written page explaining where every major number comes from.
Debt service coverage
The ratio lenders calculate first. We model it before they do.
Monthly year one
Seasonality, ramp-up and working capital needs become visible.
Scenario thinking
Conservative and base cases show you understand the downside.
What the deliverable includes
- Three-year projected profit and loss statement
- Three-year projected cash flow statement, monthly for year one
- Projected balance sheet
- Break-even analysis
- Debt service coverage calculation for the proposed financing
- Written assumptions supporting revenue, cost of sales, payroll and operating expenses
How assumptions are built
Revenue is modeled from capacity and pricing — covers per day, billable hours, units shipped, contracts serviced — rather than from a growth percentage applied to a guess.
Costs come from your quotes, leases, payroll structure and industry benchmarks. Where a number is uncertain, the projection states the range and uses the conservative end.
Who needs projections
- Startups and businesses with limited history
- SBA 7(a), 504 and Microloan applicants
- Acquisition buyers modeling post-close performance
- Franchisees modeling a new unit
- Established businesses financing expansion or major equipment
- Owners presenting to investors or partners
Related pages
Optimum Capital Services, LLC. is a business consulting and access-to-capital advisory firm. We are not a bank, direct lender or government agency. All financing is subject to third-party lender approval and program eligibility.
FAQ
Frequently asked questions
Start with a Funding Assessment
Share your business situation and we will walk you through which capital options are realistic, what documentation lenders will expect, and how to prepare a stronger submission.
OCS is an advisory firm. Financing is subject to third-party lender approval and program eligibility.