Kubr Research · Last reviewed 14 October 2026

Lender’s Checklist: Verifying a Borrower Company

A checklist of records a lender can request with the borrower’s consent, and what findings do and do not prove.

Lender due diligence on a borrower company comes down to two questions: can it repay, and is what it has told us true? Credit analysis answers the first. Records verification helps with the second. This checklist covers the records a lender can ask for, with the borrower’s consent, and is explicit about what each finding does and does not prove.

Before you start

• Get written consent from the borrower for access to bank and tax records. Agree what will be accessed, for what period and for what purpose.
• Define the claims you are relying on: turnover, existing borrowings, ownership, security offered.
• Decide who will assess flags: your credit team, your counsel or an external auditor.

Checklist

1. Identity and standing (registry)

• Legal name, registration number, status and date of incorporation match the application.
• Registered address and directors match the documents supplied.
• Filing history is regular; note gaps.

It proves: the entity exists and what it has filed. It does not prove: that it trades, or that filed numbers are accurate.

2. Existing security and borrowings (charge register)

• List registered charges, holders and status.
• Compare with borrowings disclosed in the application.
• Check whether assets offered to you are already charged.

It proves: registered security exists or has been recorded as satisfied. It does not prove: the full debt position. Unsecured debt and unregistered arrangements will not appear, and the ranking of competing security is a legal question for your counsel.

3. Financial statements (filed accounts)

• Latest accounts, audit status and notes, especially related party items and contingent liabilities.
• Trend in revenue, margins, leverage and working capital.

It proves: what the company reported for a past period. It does not prove: current performance, or that the statements are fairly presented. That is for an auditor.

4. Tax records (with consent)

• Reported turnover and tax paid compared with filed accounts and the application.
• Filing regularity and any outstanding liabilities the borrower discloses.

It proves: what the borrower reported to the tax authority. It does not prove: why a difference exists. Timing, classification and error are all ordinary explanations, so differences are questions for the borrower.

5. Bank records (with consent)

• Inflows compared with reported revenue, and concentration among counterparties.
• Existing loan repayments and any missed or returned payments.
• Large or round-sum transfers to related parties or individuals.
• Average and minimum balances against what was represented.

It proves: how money moved in the accounts you were given. It does not prove: the whole picture, since the borrower may hold other accounts, and statements do not state the purpose of a transaction.

6. Court, tribunal and insolvency records

• Recovery suits, insolvency applications and disputes involving the company.
• Equivalent searches for principal directors and promoters where the records allow.

It proves: that a proceeding is on record. It does not prove: its merits or outcome. Name matches need confirming, and materiality is a matter for your counsel.

7. Ownership and control

• Directors and shareholders from registry filings, and beneficial ownership where available.
• Compare with the guarantors and promoters named in the proposal.

It proves: what the registers record. It does not prove: that the records are complete or that nominee arrangements are absent.

Reading the results

Sort findings into three groups:

• Consistent: the claim is supported by two or more independent records.
• Different: records disagree. Record the difference and its sources, and put it to the borrower.
• Not covered: the records could not address the point. Say so, rather than leaving it implied.

Anything in the second and third groups that is material should go to your credit committee, counsel or auditor to assess. Records verification flags; it does not decide.

Limits to state in your file

• This is not an audit and not legal advice.
• It reflects the records available on the dates checked.
• It is not a guarantee that every issue has been found.

Kubr prepares records-based verification for lenders and other private-market clients; see who we serve, and read our scope and reliance terms on the disclosures page.

Sources

Primary registries and regulators referred to in this article:

• Ministry of Corporate Affairs (MCA), India
• Reserve Bank of India (RBI)
• National Company Law Tribunal (NCLT)