To ensure that the obligation is counted only once, the lender should adjust the net income of the business by the amount of interest, taxes, or insurance expense, if any, that relates to the account in question.įor additional information, see FAQs: Monthly Debt Obligations and B3-6-05, Monthly Debt Obligations. If the account in question has a history of delinquency.It is reasonable to assume that the obligation has not been accounted for in the cash flow analysis. If the business provides acceptable evidence of its payment of the obligation, but the lender’s cash flow analysis of the business does not reflect any business expense related to the obligation (such as an interest expense-and taxes and insurance, if applicable-equal to or greater than the amount of interest that one would reasonably expect to see given the amount of financing shown on the credit report and the age of the loan).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |