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FINPACK Credit Analysis Tools for Commercial Customers

by | Apr 14, 2022

FINPACK offers credit analysis solutions for both Agricultural and Commercial credits. If you’ve been using FINPACK primarily for Ag credits and your Commercial portfolio has been growing, now might be the time to look at FINPACK Commercial Credit Analysis tools.

The Right Tools for evaluating Commercial Credits

From data sources through credit analysis, FINPACK gives you all the tools you need to evaluate Commercial credits. Whether your data sources are coming from detailed or summary Balance Sheets, Tax Forms, or Income Statements, FINPACK will parse and collate your numbers right through the financial analysis tools and projections through to Collateral Analysis, Risk Reports and the Loan Presentation. Once you get into the crux of your financial analysis, of course, the tools you use differ depending on the type of business and financing situation. While both the Ag and Commercial Credit Analysis offers Global Cash Flow Analysis and Earned Net Worth Analysis, the Commercial version of FINPACK specifically adds C&I Business Analysis and Commercial Real Estate (CRE) Analysis.

C&I Business Analysis in FINPACK

The C&I Business Analysis is driven entirely from balance sheets and some form of an income statement, which is often a company tax form.  Once you have inputted the customer data in these data sources, all the work is already done, and your C&I Business Analysis will automatically generate. You have the option to include the RMA database comparison feature, driven by the business’ NAICS code.  The RMA comparison is available for an additional fee.  This feature adds the ability to run industry comparisons throughout your analysis. FINPACK generates an executive summary page, common-sized statements, percent change financial statements, detailed financial measure calculations, UCA cash flow, and cash driver’s report that differentiates the impact sales from management have on the five cash drivers.

Completing the C&I Business Analysis is as easy as selecting the tax year(s) for the business you are evaluating, as well as the related bookend balance sheets.

Commercial Real Estate (CRE) Analysis

Like the C&I Business Analysis tool, the CRE analysis is driven off tax returns. If you are evaluating a new property, with no tax history, you select this from the drop-down list. Just choose the years you would like to examine. You can also include a proforma analysis and include a full rent roll along with the appropriate status. The FINPACK CRE Analysis gives you flexibility in determining the property valuation.  You can either enter in an estimated property value and let FINPACK calculate the cap rate or put in the cap rate and have the software calculate the property value. 

Add in Stress Factors such as different vacancy rate scenarios, changes in rental rates or interest rates, and maximum LTV and minimum debt service coverage to see the impact on supportable loan amounts and income projections.

Add in Stress Factors such as vacancy rates, changes in rental rates or interest rates.  Then, see the impact of these changes in the Stress Report. 

What’s Next?

Watch below to learn more about FINPACK’s Commercial tools, or contact us today.

Relationship Manager at | 612-301-1413 | dmaguire@umn.edu | + posts

David Maguire became the FINPACK Relationship Manager in 2021. He helps Ag and Commercial lenders across the country understand the value of using FINPACK for credit analysis and loan management. David has worked in the marketing, training and education fields in Minnesota, Ireland and Germany.

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