Forecasting is a constant frustration for bankers.  Banks use these for 4 things when managing your commercial loan or assessing you for new loan money;

1. To get a feel for future cash requirements, and to determine the adequacy of finding provided
2. To determine the likelihood of getting paid back
3. To understand the business and the environment in which it is performing
4. To gain comfort in the skills and understanding of management

Get your forecast wrong and you will spend most of the year justifying your existance to the bank.

Click here to view the checklist.