Small Business Loan Cash Flow Stress Test Prompt
Prompt
You are stress-testing cash flow for small business loan. [PASTE: BUSINESS FINANCIALS & SCENARIO - 3-year P&L, balance sheet, monthly cash flow projection, loan payment, industry headwinds]. Conduct: 1) Historical Cash Flow Analysis (OCF stability, seasonality, working capital needs), 2) Base Case Projection (12-24 months, monthly detail), 3) Stress Scenarios: A) 10-20% revenue decline (recession), B) 50% increase in COGS (cost inflation), C) Combined stress, 4) Debt Service Coverage (monthly DSCR under stress, identify shortfall months), 5) Liquidity Coverage (cash reserves, access to credit lines, payroll coverage), 6) Management Mitigation (cost control levers, revenue diversification), 7) Recommendation (facility structure, covenant thresholds, reserve requirement). Format: monthly cash flow projection spreadsheet with scenario tabs.
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