At a minimum, most lenders ask borrowers for a balance sheet and a Schedule F tax return each year. The challenge is analyzing these documents to determine credit worthiness. An analysis of Illinois farms found that there is a 66 percent difference between Schedule F cash net income and accrual net income.
So how can you use Schedule F information to make informed loan decisions? FINPACK’s Schedule F Accrual Analysis makes this job easy.
FINPACK’s Schedule F Analysis:
- Requires only the beginning and ending balance sheets and a Schedule F tax return
- With a little additional information, FINPACK generates an accrual analysis
- Spreads the net farm income, financial ratios, and earned net worth change over multiple years
- Compare individual farm ratios to industry averages