A CMA report is a vital evaluation of a business’s working capital needs, which is considered by bankers when funding those needs. To grant working capital, such as Cash Credit against Stock and/or Debtors balance, bankers consider various factors, including industry-standard ratios that must be in place for their comfort. The Credit Monitoring Arrangement (CMA) report, also known as the Credit Monitoring Report, is a comprehensive financial document that provides a projected and past performance overview of a business. It includes all necessary financial ratios and metrics required to assess the financial health of a business, making it a crucial report for financial analysts and bankers.
Most banks and financial institutions require a professionally prepared CMA report from loan applicants to understand the flow and application of funds in their business.

Helps Determine Working Capital Needs : It helps businesses determine their exact working capital requirements and assists bankers in assessing their creditworthiness.
Offers Financial Clarity : The CMA report provides an accurate picture of a business’s financial health and helps identify areas that need improvement. This report enables businesses to make informed decisions about investments, growth, and expansion plans.
Simplifies the Loan Application Process : CMA reports are widely used by bankers and financial institutions to evaluate a business’s creditworthiness. By presenting a comprehensive and realistic CMA report, businesses can simplify the loan application process and increase their chances of getting their loan application approved.
Facilitates Better Negotiations : The CMA report provides a detailed analysis of a business’s financials, enabling businesses to negotiate better loan terms, interest rates, and repayment schedules.

Step 1 : To prepare a viable and realistic CMA data report online, it’s essential to have a thorough understanding of your business. At Nexteel Solutions, our Compliance Manager will reach out to you to gain a comprehensive understanding of your business, taking into account all its unique aspects.

Step 2 : After understanding your business, our Compliance Manager will prepare a draft CMA report based on various assumptions such as sales growth, expense projections, cash inflow and outflows, and assets and liabilities estimations.

Step 3 : Once the draft CMA report is ready, our Compliance Manager will discuss it with you. After any required iterations, you will receive the final CMA report, which is ready to be submitted to your bank. We provide up to two iterations to ensure any queries from bankers are resolved.

1. Last two years’ audited financial statements newest sanction letter (in case of renewal)

2. Current-year Provisional Financial Information

3. Schedule for Repayment of Term Loans ( if any)

4.Specifications of any proposed improvements, together with their terms and conditions