Business Analyzer and Underwriter’s Report

Thank you for choosing Cash Flow Specialists, Incorporated,  to assist you in the structuring and placement of your Company’s senior secured financing.  We have prepared a listing of the items and questions which we require to complete our analysis.

  1. DESCRIPTION – Please describe your loan request as simply as possible:

    • Amount of funding sought.   _________________________________________

    • Proposed uses of funding.  (Debt retirement, operating capital, new equipment, etc.)

    • _______________________________________________________________
    • Timing expectations for the new loan.  _________________________________

    • What other sources of financing have been sought? What were the reasons for decline? Please attach any term sheets or proposal received.


    B. REQUEST LISTOur analysts require copies of the following books and records:
    • Account/Receivable Agings,-Current period

    • Account/Payables Agings -Current period

    • Accountant prepared financial statements for the most recent FYE (fiscal year ended) plus the prior two years and monthly or quarterly for the last year (can be management compilations)

    • Current and prior year’s internally prepared YTD (year to date) interim financial statements. (can be management compilations)

    • Excel projections for the next 12 months plus the next two years

    • Personal financials of shareholders holding 10% or more.

    • Loan documents for any company loan outstanding.

    • Completed questionnaire

PLEASE UPLOAD YOUR DOCUMENTS TO THE CLIENT PORTAL

IN THE FOLLOWING FORMATS:

MICROSOFT WORD & EXCEL (2003), PDF, TEXT FILE, OR LOTUS

QUESTIONNAIRE

Please answer the following questions to help complete our report:

    I. General Information
    1. Borrowers full complete and correct legal name
    • ___________________________________________________________________
    • B. Place of Business
    • Principal location
    • _________________________________________________________________
    • _____________________________________________________________
    • _____________________________________________________________
    • All other locations where assets of Company are presently in existence (including locations where assets are in control of third parties, i.e., warehouses).
    • _________________________________________________________________
    • _____________________________________________________________
    • _____________________________________________________________
    • C. Officers Name Years Employed
    Chairman  __________________________________________________
    President  __________________________________________________
    Vice President ______________________________________________________
    Secretary  __________________________________________________
    Treasurer           __________________________________________________
    Controller  __________________________________________________
    • Bookkeeper         __________________________________________________
    1. Shareholders over 10%:
    • Name % Owned
    • _________________________   ______________________________________
    • _________________________   ______________________________________
    • _________________________   ______________________________________
    • _________________________   ______________________________________
    1. General Company Information

    • Manufacturer/Wholesaler/Service/Other
    • Products Handled________________________________
    • Geographic Marketing Area

    • Customer Base _________________________________

    • Date/State of Incorporation_________________________

    • State where qualified to conduct business

    • Closely Held  , Sub chapter “s”  , Public 

    • Trade Names: _________________________________________________

    • List patents, trademarks, royalty agreements and copyrights
    • (that may be used for collateral)
    • ______________________________________________________________
    • ______________________________________________________________
    • ______________________________________________________________
    • ______________________________________________________________
    • Are Financial Statements Audited (____), Reviewed (____) or Compilations (____)? Explain if qualified _______________________________________
    • _____________________________________________________________
    • Number of Employees          ______________________________________

    • Is there a union contract?  If so, expiration?   .

    • Is any litigation outstanding, pending, or threatened against the Company or any of its principals?

    • List any background issues that may be discovered during lender due diligence

    • Describe any other information that may potentially impede a financing from occurring and not mentioned anywhere else.
    1. Name the top three competitors and relative mark share:

    • Name % of Market Share
    • _______________________   _______________________________________
    • _______________________   _______________________________________
    • _______________________   _______________________________________

II. Accounts Receivable

    • A. General Information
    • Is the aging aged by invoice date or due date?

    • Selling Terms:

    • Any dating/special terms?

    • Any consignment sales?

    • Does the Company(s) drop-ship product?  Percentage  %.

    • Do customers pre-pay or make deposit payments?  If so, explain how they are booked.

    • Are there progress billings, retainages?

    • Are there sales to the U.S. Government?  . Total annual sales $ as a % of total sales  %.

    • Are there cash sales?  .  Total annual cash sales $ , as a % of total sales

    • Are there foreign accounts? % of Receivables _____________

    • Are signed purchase orders or contracts obtained?    _____________

    • Does Company(s) have credit insurance? Please Describe:  ________________

    • __________________________________________________________________
    • List all customers that the Company(s) also buys or obtains services from.    What Countries?

    Debtor       A/R Balance
    __________________________         __________________________________                                                       __________________________         __________________________________                                                                                                        __________________________         __________________________________
    __________________________         __________________________________                                                                                                           __________________________         __________________________________
    • What is the Company(s) historical dilution rate (credit memos issued divided by sales) for the YTD period and last FYE?

    • Does the Company(s) offer any limitations on returns or allowances including any contracts in regards to right of return caps?

    • Provide the top three customers (name and address) and percentage of sales:

    Customer (Name & Address)   Percentage of sales
    _____ ________________________
    _____
    _____
    • Please attach a customer master listing including names and addresses


III. Inventory

    1. Method of Valuation:  FIFO, LIFO, Average, Other   ______________________

    1. Method of Reporting:  Perpetual, Physical, G/P%, Other  ___________________

    1. Location(s):

    • 1. _______________________  $ ___________________________________
    • 2. _______________________  $ ___________________________________
    • 3. _______________________  $ ___________________________________
    1. Does Company(s) have consigned (vendor) inventory?  ____________________
    • _________________________________________________________________
    • If yes, is it segregated?  _________________________________________________
    1. Does Company(s) have customer inventory? _____________________________
    • _________________________________________________________________
    • If yes, is it segregated?  ______________________________________________
    1. Describe (include amounts):

    • Raw Materials $___________:  ______________________________________
    • __________________________________________________________________
    • __________________________________________________________________
    • __________________________________________________________________
    • Work-in-Process $___________:  ____________________________________
    • ________________________________________________________________
    • __________________________________________________________________
    • Finished Goods $___________:  _____________________________________
    • ________________________________________________________________
    • __________________________________________________________________
    • Other  $___________:  ________________________________________
    • ________________________________________________________________
    • __________________________________________________________________
    1. Has inventory been appraised?  _________________
    • Appraisal Value  _____________________________________
    • Appraisal:  Date _______________ Appraiser _________________
    • Type:  Fair Market Value (         )
    • Orderly Liquidation Value  (        )
    • Forced Sale Liquidation Value   (        )
    • Other(Specify): (                                  )
    1. Are there reserves booked against inventory?  _________ If yes, provide details.
    • __________________________________________________________________
    • __________________________________________________________________
    1. Are pre-sold finished goods separated from stock finished goods?  What percentage of finished goods are made to stock?
    • ___________________________________________________________________

IV. Machinery & Equipment

    1. General
    2. Description: _________________________________________________
    3. Appraisal Value, if any?________________________________________

    • Appraisal:  Date _______________   Appraiser _________________
    • Type:   ______________________
    • Fair Market Value (         )
    • Orderly Liquidation Value  (        )
    • Forced Sale Liquidation Value   (        )
    • Other (Specify): (                                  )

V. Real Estate

    1. Description: ____________________________________________________
    • ______________________________________________________________
    1. Appraisal Value, if any?_____________________________________

    • Appraisal:  Date _______________ Appraiser _________________
    • Type:  ______________________
    • Fair Market Value (         )
    • Orderly Liquidation Value  (        )
    • Forced Sale Liquidation Value   (        )
    • Other (Specify): (                                  )

VI. Accounts Payable

    1. General

    1. Approximate Number of Vendors: _____________________________

    1. Number with Open Balances?  ________________________________


VII. Other Debt – Please fill out the following debt schedule, include secured and unsecured debt:

Holder Security Total Monthly Pmts Current Portion Date Due