Guides on bank statement analysis, cash flow underwriting, SBA rules and credit risk for commercial lenders.
Read 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 articleTo calculate self-employed income, start with net profit or K-1 pass-through income, add back depreciation and other non-cash expenses, then average two years.
Read articleSpreading a financial statement means extracting the line items, normalizing them to your chart of accounts, reconciling, and calculating credit ratios.
Read articleBank statement spreading turns a borrower's transactions into the cash flow, balance and debt metrics behind a credit decision. Here is how it works.
Read articleBank statement OCR extracts the transactions; analysis computes the underwriting metrics behind a decision. The difference and which lenders need.
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