Credit Evaluation School - October 2023

Internal Use Only

Management’s Comments, Plans, and/or Prospects Example: During loan discussion, bank management stated the company is experiencing cash flow difficulties stemming from an increase in the price of materials. They have requested updated financial information to determine current cash flow and may temporarily restructure notes.

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Internal Use Only

Management’s Comments, Plans and/or Prospects Example: Bank management stated that the cause of the current past due status was a temporary cash flow deficiency due to delays in the company’s supply chain that should be resolved in the next six months. They further stated they plan to work with the borrower until they can return to positive cash flow.

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