When a bank assesses a working capital or term loan proposal, it works from CMA data — a structured set of past, provisional and projected financials with the ratios that credit committees look at. A proposal fails more often because the projections were internally inconsistent than because the business was weak. The numbers must tie to the filed returns, and the assumptions must survive a question.
Who needs this
- Businesses applying for cash credit, overdraft or term loans
- Existing borrowers up for annual renewal of limits
- Units applying under government credit schemes
- Businesses seeking enhancement of existing limits
Documents required
This is the usual list. Depending on your state and your specific facts, an authority may ask for more — we tell you at the scope stage rather than midway through.
- Audited financial statements for the last two to three years
- Provisional financials for the current year
- GST returns and bank statements for the last twelve months
- Details of existing loans, limits and repayment record
- Sanction letters for existing facilities
- Details of the proposed expansion or the working capital gap
How we handle it
1. Understanding the ask
We start from what you are actually asking the bank for and why, because the projection has to support that specific request.
2. Historic analysis
Past financials are analysed and reconciled to the filed returns. Any inconsistency is resolved before the bank finds it.
3. Projections
Estimated and projected balance sheets, profit and loss, and cash flow are built on assumptions you can defend — growth rate, margins, holding periods and the working capital cycle.
4. Ratio and MPBF working
Current ratio, debt-service coverage, TOL to TNW and the maximum permissible bank finance are computed to the format your bank uses.
5. Presentation and queries
The complete CMA set and project report are prepared, and we respond to the credit officer's queries during appraisal.
Fees and timeline
Projections that show implausible growth do not help a proposal — they invite scrutiny. A credible, moderately conservative projection that ties to your GST returns is far more likely to be sanctioned.
We quote after a short conversation rather than publishing a single number, because the honest answer depends on your state, your turnover and your category. Call +91 98999 00300 or send the details through the enquiry form.
Common questions
How many years of projection are needed?
Typically two to three years for working capital and the full repayment period for a term loan, though the bank's own format governs.
Our books are not audited. Can this still be done?
Provisional and estimated statements can be prepared, but they must be consistent with your GST returns and bank statements. Where audit is required for the loan size, that has to be completed first.
Does a good CMA guarantee sanction?
No. It removes the avoidable reasons for rejection. Sanction still depends on the business, the security and the bank's own appetite.
This page is general information, not advice on your facts. Rules, rates and due dates change. Government fees are payable to the concerned authority and are separate from our professional fees.