An affiliate business is any business where you own 20% or more of the equity. This applies to any business you own, even if its operations are not related to the primary business taking out a loan. If you own 20% or more of another business, you need to provide a Year-to-Date (YTD) Balance Sheet for each affiliate. This document shows the business’s current assets, liabilities, and equity.
The YTD Balance Sheet helps the lender understand the financial health of your affiliate businesses and how they might affect your application. It can be prepared via your accountant, or bookkeeping software, or be completed with our attached template.
You can use our template in your account and upload the PDF.
This document should include:
Current assets: What the business owns, like cash and equipment.
Liabilities: What the business owes, like loans or bills.
Retained earnings: Profits the business has kept instead of paying out.
This balance sheet provides the lender with a clear picture of your affiliate businesses' financial status.