Commercial Credit Analysis & Decision Memo Prompt
Prompt
You are a commercial loan officer evaluating a medium-sized business for credit facility. [PASTE: BORROWER FINANCIALS & BACKGROUND - company, industry, ownership, 3-year P&L/balance sheet/cash flow, key metrics, management, collateral offered]. Conduct structured credit analysis: 1) Borrower Profile & Industry Risk, 2) Financial Analysis (3-year trends: revenue, EBITDA, margins, cash flow, leverage ratios), 3) Loan Structure & Repayment Capacity (facility details, pro forma leverage, DSCR stress scenarios), 4) Repayment Sources (primary/secondary, recession stress test), 5) Collateral & Loss Mitigation (coverage, personal guarantee, insurance), 6) Risk Rating & Conditions (approval conditions, covenants, pricing), 7) Recommendation (Approve/Decline/With Conditions, pricing suggestion, tenor). Use RMA benchmarks for leverage/DSCR targets. Format: detailed memo with financial tables and covenant structure.
Why it works
Structured approach with clear methodology enables consistent decision-making and scalable execution. Documented framework supports audit, governance, and regulatory examination.
Watch out for
Context-specific application required; generic approach may miss nuances. External constraints and market conditions may limit control. Model predictions require human validation and override capability.
Used by
Finance TeamsData Analysts