Credit Monitoring Arrangement Data
Credit Monitoring Analysis
The CMA report, often referred to as a Credit Monitoring Analysis or Arrangement report, is a document that details a company's financial past and present performance. It thoroughly examines the borrower's working capital management and ensures that funds are used for the desired business purposes. CMA data is required for project loans, working capital limits, overdraft facilities, and term loans in accordance with RBI requirements. On the basis of specific ratios generated using CMA data, banks assess the borrower's eligibility and interest rate for funding.
Benefits of CMA Report
1Scientific evaluation of the ability to generate profits currently and in the future.
2Analyses the balance sheet and presents a thorough picture of the borrower's financial situation.
3Generates basic key ratios that are helpful for company evaluation.
4 Determines the borrower's creditworthiness in light of the need for working cash.
5It displays the borrower's Net Worth status for the upcoming anticipated years.