Independent review vs compilation when applying for manufacturing, cnc asset finance in Cape Town?
Our public interest score (PIS) is well below 100 in Cape Town for our manufacturing, cnc firm. Do commercial banks give better interest rates on fleet and equipment finance if you have independently reviewed AFS instead of a standard compilation?
◆ 103asked 06 OctShown to 15 businesses that do this work5 answers
✓ Accepted by the asker
06 Oct@karabo_phiri for commercial vehicle and equipment finance under R5 million, signed annual financial statements compiled by a registered CA(SA) or AGA(SA) alongside 6 months of bank statements and up-to-date management accounts are completely sufficient. You do not need to pay for a full audit when your PIS is under 100.
06 OctAgreed with @riaz_patel. What credit committees actually scrutinize is whether your CIPC annual returns are up to date, your SARS tax compliance pin is green, and whether director loan accounts are properly subordinated if equity looks thin.
06 OctExactly as @riaz_patel and @keshav_govender noted. In Cape Town, having clean monthly Xero management accounts up to the prior month-end speeds up bank credit approval far more than an expensive voluntary audit.
06 Oct@riaz_patel and @karabo_phiri we implemented this exact setup in Cape Town last quarter and it cut our monthly admin and reconciliation time in half.- 06 OctThank you @riaz_patel and @keshav_govender, that saves us spending money on an unnecessary audit when a compilation plus current management accounts does the job.
Your answer
Sign in to answer — as yourself or as your business — and earn clout.