Growth CircleCMA Data: What Banks Usually Look For
What CMA data contains and what lenders typically check when assessing a business loan or working-capital request.
CMA (Credit Monitoring Arrangement) data is a standard format banks use to assess a borrower's finances and repayment ability. Requirements vary by bank, so treat this as a general guide.
What it contains
- Past financial statements, usually a few years
- Estimates for the current year and projections for coming years
- Working-capital assessment and fund flow
- Details of existing borrowings and repayment
What lenders usually check
- Consistency. Do projections follow logically from past performance?
- Realistic assumptions. Growth and margins should be explainable.
- Repayment capacity. Cash generation compared with instalments due.
- Working-capital levels. Receivables, inventory and payables days.
- Leverage. How much of the business is funded by debt versus the owner's money.
- Match with other records. Turnover in financial statements should be consistent with GST and income tax filings.
Common reasons for queries
Unexplained jumps in sales or margins, differences between books and returns, unclear related-party dealings and incomplete supporting schedules. Preparing clean, reconciled numbers before applying saves weeks.
Need help with this? See our CMA & Business Projections service or book a consultation. This article is general information, not advice for your specific situation.
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