Credit scorecard
Global DSCR
1.18x
Below 1.25x threshold
Current ratio
1.74x
Adequate liquidity
A/R concentration
61%
Top customer — high risk
Guarantor net worth
$890K
Thin vs. exposure
Collateral coverage
1.42x
Acceptable
Add-back credibility
Moderate
Likely haircut
Key findings
DSCR fails minimum threshold after global cash flow adjustment
Borrower presents DSCR of 1.31x using company-only cash flow. After incorporating guarantor personal obligations and spouse income offset, global DSCR drops to 1.18x — below most bank minimums of 1.20x–1.25x.
Recommended fix: Reduce ask by $200K or provide 2 years of personal tax returns to support full add-back
A/R concentration will limit borrowing base availability
61% of receivables are owed by a single customer. Most bank ABL formulas exclude receivables from any customer exceeding 20–25% of total A/R — dropping eligible A/R from $680K to approximately $390K.
Recommended fix: Present a customer diversification plan or reduce LOC request to align with realistic availability
Guarantor support is thinner than it appears
Stated personal net worth of $1.4M includes $510K in retirement accounts, which most banks exclude. Adjusted liquid net worth is approximately $890K against $1.75M combined exposure.
Recommended fix: Document any additional liquid assets or cross-collateralize with real estate if available
Estimated borrowing capacity
Realistic LOC availability
$350K–$425K
Based on eligible A/R after concentration haircut
Supportable term debt
$950K–$1.1M
At 1.20x DSCR minimum with current cash flow
This review reflects the analysis of a former commercial bank underwriter and is provided for informational purposes only. It does not constitute a loan commitment, credit approval, or guarantee of financing.