DEMONSTRATING FINANCIAL STANDING
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Cash in the bank One of the most reliable ways of demonstrating financial standing is, and has historically been, cash held in a bank account for some time. Applicants/operators have been required to submit bank statements for a three-month period.
Opening balance If the applicant is a new business, they may not be in a position to produce bank statements for a three-month period. In such circumstances, an opening balance showing access to the required sum will suffice. However, the O-licence will be granted subject to a finance condition.
Overdraft facility A balance undrawn before the overdraft limit is reached. An offer of an overdraft facility will not suffice.
Invoice finance agreements These will only be accepted if accompanied by confirmation of the available balances not drawn down, averaged over a three-month period.
Credit card account Where a credit card account is the only source of evidence, the TC is likely to question why there is no other evidence of banking facilities available.
Debts Obtainable because they are due and likely to be easy to collect.
Assets Property, plant and machinery that can be readily sold without any adverse effect on the ability of the operator to operate efficiently and profitably.
Latest annual accounts These will only be accepted as a substitute for bank statements where they have been certified and generally only for established and substantial companies with a turnover of more than £5.6m.