Most Chilean small and medium-sized businesses don’t lose financing because the business doesn’t qualify; they lose it because they arrive at the meeting with the bank having completed all the required financial information, and each time they’re missing data adds weeks. The process builds up once, before the first meeting, not meeting after meeting. And it builds up the same way, whether it’s the first time the company is requesting financing or the fifth: the bank always asks for the same thing, so it’s best to have the complete package ready before they request it.
What does a bank ask for before evaluating?
Behind different names, all banks are asking for the same thing: evidence that the company can pay what they are requesting, in addition to what it already owes.
| Document | What evidence | Reasonable tenure |
|---|---|---|
| Financial statements (balance sheet and income statement) | Solvency and profitability of the most recent periods | The last three years – completed/closed. |
| Projected cash flow | Future ability to pay, not just past ability. | Over the next 12 to 24 months. |
| Electronic tax folder (SII) | Consistency between what is stated and what is presented. | Broadcast during the last month. |
| Current debt details | Current level of debt and with whom. | As of the date of the request. |
| Guarantees available | What is backing the operation in case something goes wrong? | Current valuation or appreciation. |
The tax dossier issued by the Internal Tax Service (SII) is, in practice, the document that most quickly reveals a poorly prepared case: if it doesn’t align with the financial statements, the assessment stops there.
The order in which it’s advisable to present it.
It’s not just about having the documents; it’s about presenting them in the order an analyst expects to see them: first, the photograph (balance), then the film (projected cash flow), and finally, the supporting documentation (guarantees and existing debt). Presenting them in a disorganized way forces the analyst to reconstruct the sequence themselves, and each reconstruction then becomes an opportunity to request additional documents.
The errors that most significantly hinder an evaluation.
- Optimistic cash flow, without explicit assumptions. A bank doesn’t reject a supposed aggressive action; it rejects a supposed action that cannot be explained in a single sentence.
- High short-term debt, without context. If the recent increase in current debt has a specific reason—such as a stock purchase or a one-time project—stating that reason will prevent it from being perceived as a cash flow problem.
- Outdated tax file. Please request it on the same day as the meeting, not a week in advance, to reflect the most recent month.
- Sales concentrated in a single client, with no diversification strategy. There’s no point in hiding it; we need to show what’s being done about it.
- Documents arriving in various formats, without an index. The accountant’s PDF, a specific spreadsheet, and a previous bank statement require the analyst to compile the information independently; an one-page index detailing what each document is, saves them from having to reconstruct the order.
How much does the weather change with the case being handled?
With complete information and in the correct order, a Chilean bank typically resolves a debt request for a small business in two to four weeks. Without it, each missing document adds another step, and it’s not uncommon for the entire process to extend to two or three months. initial inquiry Ditap Capital precisely provided that diagnosis and a map of financing options within fourteen days, before the company began discussions with the bank.
The role of an external financial advisor.
In Chile, the Fintec Law (Law 21.521) requires registration with the Comisión para el Mercado Financiero (CMF) for anyone providing investment advice or credit advice to third parties – essentially, evaluating another party’s ability to pay in order for a third party to lend them money. Directing the client’s own numbers and connecting them with banks, factoring, or funds does not fall under either structuring or regulated financial intermediation. Therefore, a consultant of this type builds the case and supports the negotiation, but never replaces the evaluation performed by a bank or provides the funds themselves.
The Central Bank of Chile publishes the Banking Credit Survey quarterly, which measures how demanding banks are being towards companies in each cycle. During the most restrictive periods, an impeccably presented application no longer represents a minor detail; it becomes the key factor differentiating an approval from a rejection.
Preparing the case doesn’t change the underlying business. It changes how long, and under what conditions, a bank takes to clearly assess it. A company that requests financing again a year after the initial request shouldn’t have to start from scratch: the same case, updated, is suitable for the next meeting and the one that follows.