AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
A lender will usually ask for the three core statements (income statement, statement of financial position and cash flow statement) for the last one to three years, recent management accounts for the current year, and bank statements. From these it reads a handful of ratios: margins, current ratio, debt to equity, interest cover and debt service cover. Each lender sets its own list, so ask for it in writing before you prepare anything.
Most loan applications that stall do so because the numbers are missing, late or do not agree with the bank statements. Lenders do not need polished reports; they need figures that are complete, consistent and explainable. This guide lists what is normally asked for, what each document shows, and the ratios a credit analyst will calculate from it.
The three core statements
- Income statement (profit and loss)
- Revenue, cost of sales, gross profit, operating expenses, interest, tax and net profit for a period. Shows whether the business makes money. See the profit and loss statement explained.
- Statement of financial position (balance sheet)
- What the business owns (assets), owes (liabilities) and the owners' stake (equity) at a date. Shows strength and existing debt.
- Cash flow statement
- Cash in and out from operations, investing and financing. Shows whether profit turns into cash, which is what repays a loan.
Notes to the accounts matter too: they explain accounting policies, loans already taken, related-party dealings and anything unusual.
Audited or unaudited?
Section 402 of the Companies and Allied Matters Act 2020 exempts a company from the audit requirements for a year if it is dormant or qualifies as a small company under section 394, unless during that year it was a bank, insurer or another company type the CAC has prescribed. Separately, PwC's Nigeria tax administration summary (reviewed May 2026) lists audited financial statements among annual tax filings. Lenders differ: some accept accountant-prepared accounts for small borrowers, others insist on audited ones. For tax, section 11 of the Nigeria Tax Administration Act 2025 allows a small company to submit a statement of accounts attested by the taxpayer instead of audited statements. Ask your accountant which rules apply to you, and ask the lender which it needs.
The full pack most lenders ask for
- Financial statements for the last one to three financial years.
- Management accounts for the current year to date, ideally monthly (see monthly management accounts).
- Bank statements for the main business account, commonly six to twelve months; the lender will specify.
- A cash flow forecast showing how repayments will be met (a 13-week forecast is a good base).
- Aged debtors and creditors lists, and a stock summary if you hold stock.
- Schedule of existing loans and other commitments.
- Company documents and tax records, as listed by the lender.
The figures across these documents must agree. If the income statement shows ₦60 million of sales but the bank statements show ₦25 million of receipts, expect questions about where the rest was banked.
The ratios a lender reads, with an example
Example only. A distribution business reports: revenue ₦60,000,000; cost of sales ₦42,000,000; operating expenses ₦12,000,000 including depreciation of ₦1,000,000; interest ₦1,500,000. Current assets ₦15,000,000 including stock of ₦6,000,000; current liabilities ₦10,000,000. Proposed annual loan repayments (principal and interest) ₦4,000,000.
| Ratio | How it is worked out | Example result |
|---|---|---|
| Gross margin | Gross profit ÷ revenue: ₦18m ÷ ₦60m | 30% |
| Operating profit (EBIT) | ₦18m − ₦12m | ₦6,000,000 |
| Interest cover | EBIT ÷ interest: ₦6m ÷ ₦1.5m | 4.0 times |
| Current ratio | Current assets ÷ current liabilities: ₦15m ÷ ₦10m | 1.5 |
| Quick ratio | (Current assets − stock) ÷ current liabilities: ₦9m ÷ ₦10m | 0.9 |
| Debt service cover | EBITDA ÷ annual debt service: (₦6m + ₦1m) ÷ ₦4m | 1.75 times |
There is no single pass mark; each lender sets its own thresholds by sector and loan type. In general, a debt service cover comfortably above 1 shows the business earns enough to pay, a quick ratio below 1 shows reliance on selling stock to meet bills, and high debt relative to equity suggests the owners have little at stake. Lenders also look at trends: a falling gross margin over three years worries them more than one weak year.
How an analyst adjusts your figures
A credit analyst rarely takes the accounts at face value. Expect the figures to be adjusted before the ratios are worked out, and prepare explanations in advance so the adjustments go your way where they should.
- One-off items. A large insurance receipt or a one-time contract is usually stripped out of profit; a one-off repair may be added back if you can show it will not recur.
- Owner's costs. Personal spending run through the business is added back, but so is a fair salary for the owner if none is charged.
- Debtors. Old, unpaid invoices may be excluded from current assets, which lowers the current ratio.
- Stock. Slow-moving or obsolete stock may be discounted, so value it properly at the lower of cost and net realisable value first.
- Seasonality. A business with a December peak should show monthly figures so the lender sees the pattern, not just a yearly total.
What to check first
- Bank statements reconcile to your records (see bank reconciliation steps).
- Personal and business money are not mixed.
- Large one-off items are explained in a note.
- Your forecast uses the repayment the lender offered, and states the assumptions.
- You understand the full cost of the facility: interest as stated (monthly or annual), fees and any security.
Remember that a lender offers a facility based on what it sees and you decide whether to accept the terms. Read the offer letter fully before signing, and compare the total cost in naira over the term.
Where Pryme fits
Keeping the business's money in one Business Account gives you clean statements to submit. Through our partner VerifyDoc.ai, any Pryme customer can generate a verifiable statement that a recipient can check is genuine and unaltered (see receipts and statements).
Questions people ask
What documents do banks need for a business loan in Nigeria?
Usually financial statements for one to three years, current management accounts, six to twelve months of bank statements, a cash flow forecast and company documents. Each bank publishes or gives its own list.
Do I need audited accounts to get a loan?
It depends on the lender and the loan size. CAMA 2020 s.402 exempts small companies from audit, but many lenders still ask for audited accounts. Confirm with the lender first.
What is debt service coverage ratio?
Cash profit before interest and depreciation (EBITDA) divided by annual loan repayments. ₦7m ÷ ₦4m gives 1.75, meaning earnings cover repayments 1.75 times.
What are management accounts?
Monthly or quarterly internal reports, usually a profit and loss, balance sheet and cash summary, used to run the business and to show a lender current performance.
Sources
- Companies and Allied Matters Act 2020, section 402 (LawGlobalHub text) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazette copy), sections 11 and 31 · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, corporate tax administration (last reviewed 29 May 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.