Guides on bank statement analysis, cash flow underwriting, SBA rules and credit risk for commercial lenders.
A loan covenant breach is a technical default: the borrower fails a term while payments are current. What happens next, from waiver to workout.
Read articleMember business lending rules for credit unions: the NCUA Part 723 definition, the 1.75x net worth MBL cap, and the personal guarantee change.
Read articleA commercial loan annual review re-spreads the latest financials, recalculates DSCR, checks covenants and collateral, and resets the risk rating.
Read articleHow lenders monitor loan covenant compliance: the three covenant types, the financial covenants tested, the compliance certificate, and breaches.
Read articleHow banks assign a credit risk rating to a commercial loan: the Pass to Loss regulatory scale, the factors behind each grade, and how analysts speed it up.
Read articleThe financial ratios lenders calculate in credit analysis: the four ratio categories, the formulas, and the benchmarks that pass or fail a deal.
Read articleCommercial loan underwriting runs in five steps: collect documents, spread the financials, analyze cash flow and the 5 Cs, risk rate, then decide.
Read articleHow cash flow based lending works: how lenders underwrite it from bank statements, the metrics and DSCR they use, and how it differs from ABL.
Read articleThe criteria factoring companies use to approve a client: debtor credit, invoice verification, UCC liens, concentration limits and advance rates.
Read articleHow banks underwrite a C&I loan: the cash flow analysis, DSCR and leverage benchmarks, the 5 Cs, and the documents an underwriter actually reads.
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