Guides on bank statement analysis, cash flow underwriting, SBA rules and credit risk for commercial lenders.
Commercial loan underwriting runs in five steps: collect documents, spread the financials, analyze cash flow and the 5 Cs, risk rate, then decide.
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.
Read articleCash 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 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.
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