Preparing a funding request: the role of the accountant;

In short. To finance a business project in Quebec, a lender almost always requires financial statements for your last two or three fiscal years, your T2 and CO-17 tax returns with notice of assessment, a 12- to 24-month cash flow forecast, and a down payment that often ranges from 10% to 25% of the project cost. They then calculate ratios, including the debt service coverage ratio, which is often expected to be around 1.25. An accountant experienced in financing prepares these documents in the format the analyst expects and often makes the difference between a rejection and an approval.

Whether you're seeking a start-up loan, equipment purchase, premises acquisition, or working capital, all lenders assess your application the same way: based on verifiable figures and credible projections. In Quebec, this means proper financial statements, up-to-date tax returns to the CRA and Revenu Québec, and a financing plan that meets the analytical criteria of financial institutions, the BDC, or Investissement Québec. This guide details the required documents, the calculated ratios, and the specific role of the accountant at each stage.

Why does the accountant have such a significant influence on a funding application?

A lender doesn't finance an idea; they finance a proven ability to repay. But this proof is demonstrated through standardized accounting documents, prepared according to precise rules. Financial statements prepared internally in a spreadsheet do not carry the same weight as a set of statements prepared by an external accountant, and even less so than a review engagement signed by a CPA who is a member of the Quebec CPA Order.

In a funding request, the accountant plays three roles:

• It puts your past in a position to prove it. Up-to-date books, financial statements for the last few years, filed T2 and CO-17 returns, VAT and withholding taxes paid. If your bookkeeping is behind schedule, this is the first step: consult our bookkeeping catch-up guide.
• It translates your project into lender language. Cash flow budget, profit forecasts, documented assumptions, pre-calculated ratios: the file arrives in the format the analyst expects, which speeds up the study.
• He defends the case. An accountant experienced in financing anticipates the analyst's questions, adjusts the structure (down payment, duration, financing vehicle) and accompanies you to meetings with the lender.

What financial statements do lenders require?

The foundation of your application is your historical financial statements. Most lenders require the last two or three fiscal years, supplemented by recent interim statements, often less than 90 days old, to see your current financial position. Here is the typical content of a financing application for a Quebec SME.

The level of assurance required varies depending on the amount and risk. For small financing, a compilation engagement (which replaced the Notice to Reader in 2021 under Canadian Standard NCSC 4200) is often sufficient. Beyond that, many lenders require a review engagement , which provides moderate assurance on the financial statements, and larger financings may commission an audit , which offers reasonable assurance. Review engagements and audits are performed by a CPA qualified for this type of engagement; confirm the level required by your lender early on, as these engagements are more planned and cost more than a compilation.

What financial projections should be prepared?

Historical records prove your background; projections prove your ability to repay. Two documents are almost always required:

• The monthly cash flow budget over 12 to 24 months. Projected cash inflows and outflows, including debt servicing for the new loan. This is the document the analyst scrutinizes most closely: it shows, month by month, whether the money will be available to cover the payments.
• The projected profit and loss statement for the next 2 to 3 years. Projected revenues, margins and expenses, based on your historical data and order book.

The value of these projections lies entirely in their underlying assumptions . A lender systematically tests their realism: revenue growth consistent with historical data, supported by signed contracts, seasonality reflected, and expenses keeping pace with actual inflation. Many analysts also apply a sensitivity scenario, for example, a 10% to 20% reduction in revenue, to verify that repayments can still be made. An accountant experienced in this exercise immediately constructs both a realistic and a conservative scenario, with each assumption documented in a notebook that the analyst can verify: this is what distinguishes a credible projection from an optimistic spreadsheet.

The ratios that your lender will calculate

Behind every credit decision lies a set of ratios. The exact thresholds vary from one lender to another and are not official rules, but the following orders of magnitude consistently appear in SME files.

Two factors deserve particular attention before filing. First, the manager's compensation : the allocation between salary and dividends influences both the reported profit, net assets, and calculated repayment capacity; our article on salary versus dividends details this trade-off. Second, the down payment : most lenders want the entrepreneur to commit 10% to 25% of the project cost; an insufficient down payment can sometimes be corrected by additional capital from shareholders or subordinated financing, arrangements your accountant is familiar with.

Where to look for funding in Quebec in 2026?

The accountant's role often includes directing the client to the right lender. The main entry points for a French SME are:

• Credit institutions (banks and savings banks): term loans, lines of credit, equipment financing.
• The Canada Small Business Financing Program (CSBF) : federally guaranteed loans from financial institutions, up to $1.15 million, for the purchase or improvement of real estate, equipment and intangible assets.
• The Business Development Bank of Canada (BDC) : a federal lender dedicated to entrepreneurs, often complementary to bank financing.
• Investissement Québec : loans, loan guarantees and financing solutions for projects carried out in Quebec.
• Local and regional funds : local investment funds and economic development bodies, which finance smaller projects.

Each lender has its own forms and requirements, but the core of the application remains the same: accurate financial statements, credible projections, and defensible ratios. Establishing this foundation once, correctly, allows you to approach several lenders simultaneously and compare their offers.

How an accountant experienced in financing prepares your application

In concrete terms, here is the typical process of a funding preparation mandate:

• 1. Bookkeeping upgrade. Bookkeeping up to date, bank reconciliations done, T2 and CO-17 produced, taxes and DAS settled.
• 2. Production of statements. Financial statements for the last few years at the required level of assurance (compilation, review or audit) and recent interim statements.
• 3. Projections and assumptions. Cash budget over 12 to 24 months and projected results, with a verifiable assumptions document.
• 4. Preliminary ratio analysis. The accountant calculates your ratios before the lender and makes adjustments if necessary: ​​revise remuneration, spread out an investment, increase the down payment.
• 5. Choosing the lender and support. Selection of the appropriate program(s), submission of the application, answers to the analyst's questions until the decision is made.

Côté honoraires, la préparation d'un dossier de financement s'inscrit généralement dans le mandat comptable global de l'entreprise. Pour situer les ordres de grandeur : la médiane est d'environ 3 000 $ par année et la plupart des mandats se situent entre 500 et 6 000 $, basé sur les honoraires réels de 1 248 mandats conclus via Bankeo (2024-2026), sur plus de 15 000 demandes reçues. Le Baromètre Bankeo détaille ces fourchettes par service et par secteur; une mission d'examen ou un audit exigé par le prêteur s'ajoute au-dessus de ce socle et se budgète dès le départ.

The decisive factor remains experience: an accountant who regularly prepares financing applications knows lenders' requirements, the documents that are always missing, and the actual processing times. This is exactly the type of profile Bankeo targets for its matching service: you describe your project, we present you with accountants from our network whose practices match your needs, and you choose freely.

Frequently asked questions

What documents does a lender require for business financing in Quebec?

The basic requirements include: financial statements for the last two or three fiscal years, interim statements less than 90 days old, T2 and CO-17 tax returns with tax assessments, a 12- to 24-month cash flow forecast, 2- to 3-year projected results with underlying assumptions, the age of accounts receivable and accounts payable, and the shareholders' personal financial statements. A business plan is also required for start-up or expansion projects.

Are audited financial statements required to obtain a loan?

Rarely for an SME. For small financing, a compilation engagement (which has replaced the Notice to Reader since 2021, under NCSC 4200) is often sufficient. Many lenders require a review engagement, which provides moderate assurance, above a certain amount, and a full audit is primarily requested for larger financings. The required level varies from one lender to another: confirm it in writing before commissioning the engagement, as the cost increases with each level.

What financial projections does a lender want to see?

Two documents are required: a monthly cash flow budget over 12 to 24 months, which includes debt servicing for the requested loan, and a projected profit and loss statement over 2 to 3 years. The most important assumptions are those based on historical data, supported by contracts, and seasonality. Also, include a conservative scenario, as the analyst will assess the repayment capacity if your revenues decline by 10 to 20%.

What is the debt service coverage ratio?

This is the ratio between the cash flow generated by your business, often approximated by EBITDA, and your annual principal and interest payments. A ratio of 1.25 means you generate $1.25 for every dollar of payment. Many lenders use a threshold around 1.25 as a guideline, but each institution has its own scale. Your accountant calculates it before the deposit and suggests adjustments if the application is accurate.

How much does it cost to hire an accountant to prepare a funding application?

La préparation du dossier s'inscrit généralement dans le mandat comptable global de l'entreprise. La médiane observée est d'environ 3 000 $ par année et la plupart des mandats se situent entre 500 et 6 000 $, basé sur les honoraires réels de 1 248 mandats conclus via Bankeo (2024-2026), sur plus de 15 000 demandes reçues. Une mission d'examen ou un audit exigé par le prêteur s'ajoute à ce socle. Le Baromètre Bankeo détaille les fourchettes par service et par secteur.

How can I find an accountant who is experienced in handling financing requests?

Describe your project to Bankeo: matching is free, with no obligation, and targets audited accountants from our network of over 1,500 partners whose expertise aligns with your needs—in this case, preparing financing applications. Entrepreneurs are often matched within 48 hours, the service boasts a 4.7/5 rating based on over 180 Google reviews, and we support you for as long as necessary, even if your accountant is no longer a suitable fit in six months.

Official sources

1. Government of the | Canada Small Business Financing Program Canada (PFPEC)
2. Development Bank of the | Canada (BDC)
3. Revenu Québec Business Space
4. Government of the | Canada Subsidies and financing for businesses
5. Quebec CPA Order