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What is the reason for the bank requesting the financial statements of a facility when it submits a request to obtain facilities and loans?

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Question added by Khalil Gibran Hassan Saifan , محاسب , العيدروس للصرافة والتحويلات
Date Posted: 2021/11/17
Khaled Ahmad Muhammad Alosaimi
by Khaled Ahmad Muhammad Alosaimi , مدير عام , العصيمي للمياه

In order to determine the financial position of the organization and the bank's knowledge of the loan recovery rate and guarantee its rights

TAREK ALAIDEY
by TAREK ALAIDEY , CHIEF ACCOUNTANT , Cooperation Medical Co. Ltd

 

Lenders and investors will always ask for financial statements as part of the application process. ... Banks and investors will then analyze where the company has been and where it appears to be going to determine if its trajectory fits within acceptable risk parameters.