Articles and updates on receipt and invoice extraction, data processing and automation.
NSF 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 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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