Ray Ellingsen, AmeriQuest Transportation Services’ Vice President of Syndication & Operations, knows the importance of a good financial presentation when working to access capital and credit.
Earlier this year, Monitor Daily published Ellingsen’s article, “The Direct Route to Capital Access.” The article reveals that although truck lifecycle operating costs may represent 79% of a truck’s total asset cost, the fleet financing costs that represent the remaining 21% make finding the best available fleet financing options a vital role for owners and managers.
According to Ellingsen, “Obtaining the most favorable credit/finance terms can be significantly influenced by an often underappreciated aspect of running a business organization – the creation, maintenance and communication of meaningful, illustrative financial and managerial reporting.” In other words, if you want to gain access to credit and capital, you need to have a clear narrative, backed up with good financial reporting that banks, lending institutions, and leasing companies will understand and to which they will react positively.
The article lists five pieces of information every financial presentation should possess, including quarterly and fiscal year-end information, prior period :”like-term” comparison, budget comparisons and related budget variances, financial forecasts one to three years out, and KPIs.
Discover how to tell the right story that can help you find the most direct route to the capital you need to grow your fleet by reading the full article.
This blog originally appeared on the AmeriQuest Blog Website.