Credit Monitoring Arrangement – An overview

  • Credit Monitoring Arrangement report is the report showing the projected performance and the past performance of a business in financial terms. It is compiled with all the required financial ratios and metrics to help Financial Analysts and Bankers to ascertain the financial health of a business vis-a-vis the credit proposal under review.CMA_new
  • Most of the Banking and Financial Institutions request the applicant (Business Loan Applicant) to prepare a Credit Monitoring Arrangement report (CMA report) in order to understand the flow and application of funds in a business.
  • Components of a credit monitoring arrangement include a projected financial statement, cash flow statement, TLR & DSCR statement, ABF statement, Operating statement, liability statement, asset statement, performance and financial indicators. These statement helps the bank to gauge the financial position of your company in order to assess the repaying capacity.

With more regulatory requirement and stringent advancing rules, banking finance now takes considerable amount of time and involves time consuming inquiry by bankers. A credit monitoring arrangement can make or break your funding. We decipher the financial statements and make bankers aware of the client’s position and act as bridge between the client and the bankers. Our team of professionals will discuss with bankers your fund requirements and prepare a CMA Report and answer all their queries.

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