CMA report also known as the Credit Monitoring Arrangement report. It is the report showing the projected performance and the past performance of a business in financial terms to obtain a bank loan. A CMA report compiles all the required financial ratios and metrics for a bank loan. Therefore it helps bankers obtain the financial health of a business. Part of the necessary documentation required by businesses compiles the past performance of the same, as well as future projections in a specific format that allows invested stakeholders to quickly assess the financial health of the undertaking.

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What statements are included in the CMA project report for bank loans?
  • Operating Statement

This indicates the borrower’s business plan showing the Current Sales, profit before & after-tax, sales projections, direct & indirect expenses, and profit position for 3 to 5 years.

  • Analysis of Balance sheet

This statement contains an analysis of the current & projected financial years. Also, it helps in providing a comprehensive analysis of current & non-current assets, current & non-current liabilities, and cash & bank position of the borrower. This statement also specifies the net worth position of the borrower for the future projected years.

  • Comparative statement of current asset and current liability

This analysis helps to decide the capacity of the borrower to meet the working capital requirements. It will also help in deciding the actual working capital cycle for the projected period.

  • Calculation of ABF/MPBF

This includes a calculation that indicates the Asset Based Finance and Maximum Permissible Bank Finance. Also, it shows the borrower’s capacity to borrow money.

  • Cashflow statement

The main objective of this statement is to capture the movement of the fund for the given period.

  • Ratios

This indicates the financial strength of the unit at different parameters

If you need an expert to do the CMA project report for bank loans, our team can also prepare the same for you, please fill out the form for our agent to contact and discuss in detail.