accounting?

Question

What statement is more important to the lender if giving out loan:
I think its a balance sheet and income statement. or is it balance sheet and cash flow statement

Answer 1

The latter: balance sheet and cash flow statement.

The balance sheet shows a company's assets and the offsetting fund of debt and owners' equity. It essentially shows how much capacity a company has to pay back its obligation from existing financial position.

The cash flow statement illustrates a company's ability to pay back its obligations from on-going earnings. This differs from the income statement as the latter is based on accrual principals. While accruals are necessary and helpful to show the economic benefits and costs of non-invoiced provisions/revenues, you can't pay debt with academia - you need to pay in cold hard cash.

Answer 2

All 3. If amounts substantial, I'd also require audited statements.