You should include with your loan application paperwork:
A detailed, signed balance sheet
Profit and loss statements
A one-year projection of income and explanation of how you intend to reach that income level
The Profit & Loss sheet is also referred to as an income statement. These statements can also help business owners project future revenues. First, use this equation to determine net profit:
Gross profit – operating expenses = net profit
The gross profit should be calculated as total sales minus the cost of the goods (such as raw materials or inventory). Don’t forget to factor in overhead costs like utilities and insurance.
Keep in mind that you’ll need profit and loss statements for the past three years to show that your business has a strong financial standing.