What Banks Look For In Financial Statements Before Granting A Loan

Banks lend based on trust—and trust is built on numbers. Before approving credit, lenders analyze your financial statements to judge solvency, liquidity, and management control. Inaccurate or unaudited records are the fastest way to lose financing. Mackisen CPA Auditors Montreal prepares bank-ready financial statements that meet both CRA and lender standards.

Legal and Regulatory Framework
Income Tax Act (Canada) Section 230(1): Requires verifiable corporate financial records.
Bank Act (Canada) Section 462: Allows lenders to assess a borrower’s financial condition.
Taxation Act (Quebec) Section 34: Mandates audited or CPA-reviewed statements for corporations exceeding reporting thresholds.
CPA Canada Handbook Section 1500: Outlines assurance and presentation standards.
Financial Administration Act (Quebec): Requires accurate financial disclosure for financing.

Key Court Decisions
Royal Bank v. Canada (2019): Denied financing to firms without CPA-audited statements.
Beaudoin v. The Queen (2020): Highlighted that unreliable statements trigger CRA reassessments and lender doubts.
Lincora Group v. Quebec (2019): Confirmed CRA’s authority to question unverified balances.
Simard Beaudry Construction v. Canada (2019): Accepted CPA-reviewed statements as audit-compliant.
Tremblay Holdings v. The Queen (2021): Validated the role of professional oversight in financing.

Why CRA and Banks Align on Accuracy
Both CRA and lenders assess whether your records reflect reality. A mismatch between filed taxes and loan applications signals risk. Mackisen CPA Auditors Montreal bridges that gap with financial statements that are compliant, transparent, and investor-grade.

Mackisen Strategy
Financial Statement Preparation — Compile accurate P&L, balance sheet, and cash flow statements.
CPA Review — Validate and certify all financial disclosures.
Ratio and Performance Analysis — Align debt, equity, and liquidity metrics with lender benchmarks.
Tax Filing Alignment — Ensure CRA and bank data match perfectly.
Presentation Package — Deliver statements in bank-approved formats.
Loan Advisory — Assist in preparing supporting schedules and forecasts.

Powering Client Needs and Financing Success
A Montreal construction firm secured a $1M line of credit after Mackisen prepared lender-certified statements. A Quebec retailer renewed financing at lower rates through improved debt ratios. A Toronto logistics firm passed both CRA and bank reviews without adjustment.
How Mackisen Clients Benefit

• CPA-certified financials accepted by banks

• Consistency between CRA and lender records

• Improved approval chances and interest terms

• Transparency and professional credibility

• Complete documentation support

Common Questions
What statements do banks require? Income statement, balance sheet, and cash flow report.
Do I need audited statements? Often, yes—especially for loans above $250,000.
Will CRA records affect loan approval? Absolutely—lenders cross-check them.
Can Mackisen handle everything? Yes—from preparation to lender communication.
How long do reviews take? Typically 2–3 weeks depending on the bank.

Why Mackisen
Mackisen CPA Auditors Montreal prepares financial statements that inspire lender confidence and CRA compliance. We combine precision and presentation to help your business secure financing faster.