Which Essential Documents Are Needed for Raising Capital in the Philippines?

The essential checklist for raising debt or equity capital

When entrepreneurs seek capital to grow their businesses, having the right documentation is crucial. Investors and lenders require comprehensive information to assess the viability and potential of a business. This guide outlines the key documents needed when approaching investors or lenders, categorized into financial, legal, and business-related documentation.

Key Documents Required

1. Financial Documentation

   • Income Statements: Historical and projected income statements for 3-5 years.

   • Balance Sheets: Current and projected balance sheets.

   • Cash Flow Statements: Historical and forecasted cash flow statements.

   • Financial Projections: Detailed projections for the next 3-5 years, including assumptions used.

   • Tax Returns: Business tax returns for the past 2-3 years.

2. Legal Documentation

   • Business Structure Documents: Articles of incorporation, bylaws, and operating agreements.

   • Intellectual Property (IP) Documentation: Patents, trademarks, or copyrights if applicable.

   • Contracts: Existing contracts with suppliers, customers, or partners.

   • Licenses and Permits: Any necessary business licenses or permits required for operation.

3. Business-Related Documentation

   • Business Plan: A comprehensive business plan outlining the business model, market analysis, competitive landscape, and growth strategy.

   • Pitch Deck: A compelling presentation summarizing the business opportunity for potential investors.

   • Market Research: Data and analysis supporting market demand for your product or service.

   • Exit Strategy: A clear plan outlining how investors will realize returns on their investments.

     
     

Checklist for Entrepreneurs

Here’s a comprehensive checklist to help entrepreneurs ensure they have all necessary documentation ready before approaching investors or lenders:

Document Type	Specific Documents Required	Status (✓/✗)
Financial Documents	Income Statements (3-5 years)
	Balance Sheets (current & projected)
	Cash Flow Statements (historical & forecasted)
	Financial Projections (3-5 years)
	Tax Returns (last 2-3 years)
Legal Documents	Articles of Incorporation
	Bylaws
	Operating Agreements
	Intellectual Property Documentation
	Contracts with Suppliers/Customers
	Licenses and Permits
Business Documents	Comprehensive Business Plan
	Investor Pitch Deck
	Market Research Data
	Exit Strategy Plan

Preparing these documents enhances your credibility and streamlines the fundraising process. By ensuring that you have all necessary documentation in order, you can present a strong case to potential investors or lenders, increasing your chances of securing the capital needed to propel your business forward.

If you have a majority of these information and documents, reach out to ARQ SME Business Development Company (ARQ SME BDC) and explore how SME mezzanine financing supports your business growth plans.