Articles and updates on receipt and invoice extraction, data processing and automation.
Commercial 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.
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 articleA worked cash flow underwriting example: read a small business borrower's bank statements, calculate net operating cash flow, then test it against debt service.
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.
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