Guides on bank statement analysis, cash flow underwriting, SBA rules and credit risk for commercial lenders.
Cash flow underwriting judges repayment ability from real bank statement cash flow, not a credit score alone. How it works and how lenders automate it.
Read articleAdd-backs convert net income into cash flow available for debt service. Which add-backs lenders allow, which they reject, and how to calculate them for DSCR.
Read articleFinancial spreading moves a borrower's statements and tax returns into a standard format so credit ratios compare. What it is and how to automate it.
Read articleA worked financial spreading example: spread a borrower's income statement and balance sheet, normalize the line items, then calculate DSCR and leverage.
Read articleThe small business loan underwriting criteria lenders actually use: cash flow and DSCR, credit, time in business, collateral, and the documents behind each.
Read articleNSF items and negative days both signal cash-flow stress, but underwriters weight them differently. The thresholds, paper grades and how to count both.
Read articleVerify self-employed income by reconciling bank statement deposits against tax returns and P&Ls. A lender's guide to documents, calculation and red flags.
Read articleAverage daily balance is each day's closing balance summed and divided by the days in the cycle. See how lenders and MCA funders calculate and use it.
Read articleRead NSF and overdrafts on a bank statement the way underwriters do: tell a declined item from a paid overdraft, count negative days, and spot real cash strain.
Read articleDebt service coverage ratio (DSCR) shows whether income covers debt payments. The formula, what counts as a good DSCR, and how lenders calculate it.
Read article