Lender-ready worksheet

Financial Projections

Two years of projected revenue, costs, and operating expenses. We calculate EBITDA, annual debt service, and your debt service coverage ratio as you type.

Who is this worksheet for?

We attach the completed worksheet to your file so your advisor sees it with the rest of your package.

First name*

Last name*

Email*

Phone

Legal business name

Proposed financing

Used to calculate debt service. Estimates are fine - your advisor will refine the terms.

First projection year

Loan amount requested

Interest rate (%)

Term (months)

Estimated monthly payment: $0 · Annual debt service: $0

Projected profit and loss

Year 1 (2027)

Projected revenue

Cost of goods sold

Payroll and payroll taxes

Rent and occupancy

Utilities

Insurance

Marketing and advertising

Professional fees

Software and subscriptions

Repairs and maintenance

Travel and vehicle

Other operating expenses

Depreciation and amortization

Planned owner distributions

Year 2 (2028)

Projected revenue

Cost of goods sold

Payroll and payroll taxes

Rent and occupancy

Utilities

Insurance

Marketing and advertising

Professional fees

Software and subscriptions

Repairs and maintenance

Travel and vehicle

Other operating expenses

Depreciation and amortization

Planned owner distributions

Calculated results

Year 1 (2027)

Gross profit: $0
Operating expenses: $0
EBITDA: $0
Net income: $0
DSCR: —

Year 2 (2028)

Gross profit: $0
Operating expenses: $0
EBITDA: $0
Net income: $0
DSCR: —

Most conventional and SBA lenders look for a DSCR of 1.25x or better. These figures are your projections, not a credit decision or an offer of financing.

Key assumptions behind these numbers

Pricing, unit volume, headcount plan, seasonality, new locations. Underwriters ask for this every time.

Why this form is required

Financial projections are a forward-looking forecast of revenue, cost of goods, operating expenses, and net cash flow, usually monthly for the first year and annually for years two and three. Lenders require them whenever historical results do not answer the question of repayment, such as a startup, an acquisition, an expansion, or a business recovering from a down year. What is really being tested is projected debt service coverage and the credibility of the assumptions behind it.

How many years of financial projections do lenders want?

Two years is the common standard, with the first year broken out monthly and the second annually. Longer or more complex projects, such as construction or a multi-site rollout, sometimes need three years.

What debt service coverage ratio do lenders look for?

Most look for at least 1.15 to 1.25 times total debt service including the new payment. Thinner coverage is possible with strong collateral or a strong guarantor, but it invites more scrutiny.

Should projections be optimistic or conservative?

Defensible. Build the case you actually believe, support it with drivers, and show that coverage holds even if revenue lands below plan. A forecast you can explain beats a bigger one you cannot.

Do I need a CPA to prepare projections?

No. Lenders accept management-prepared projections as long as the assumptions are stated. A CPA review can help on larger or more complex requests. Kala is an advisory firm, not a CPA firm, so confirm tax treatment with your accountant.

Read the full guide: Financial projections

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