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Why does a lender ask for detailed information on the financials of the store?

A financial statement is a document which is intended to show less profit to the store in order to manage tax obligations. However, a lender (and a buyer!) is much more interested in what the “raw” performance of the store is, without all of the deductions and tax strategies. In order to get an accurate picture of the cash flow of the store, sometimes Lenders require verification of the amounts listed in the expense lines of the store. Usually this verification is to the benefit of the buyer in…