Global Cashflow is a combined cashflow statement from multiple entities in order to assess the debt serviceability of the application.
Global Cashflow Analysis and Global Debt Service calculations are the key factors in the commercial underwriting process. Prior to this release, Q2 Origination supported the calculation of Global Cashflow Analysis. With this release, we have extended the functionality to calculate the Global Debt Service Coverage.
A new option, “Global DSC”, has been provided on the Financial Spreads page. Credit analysts can select parties and financial statements on whom the global DSC analysis needs to be performed. On selection, all existing loan/LOC contracts of selected parties are fetched and displayed. Any inflight application is also shown. Loans in other FIs fetched from credit report are also displayed. Q2 Origination calculates the combined Annual Debt Service that all selected parties are obligated to make. This Annual Debt Service is then considered to calculate Global Debt Service Coverage.
With this enhancement, underwriters can easily view all the current debt obligations of all the selected parties and ascertain if the minimum global DSCR is met for a loan application. This Global DSCR can also be used in Scorecards to make effective and quick credit approvals.
A new tab, Global DSC has been introduced on the Financial Spreads page.
Once the Global DSC is selected, user must select + to generate the Global Cashflow statement.
Note
If the account is not eligible for adding financial statements, the + icon disappears from the Global DSC financial statement tab.
A pop-up is displayed to the user with three options.
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Select Parties: The user must select the relevant parties whose financial need to be considered for Global DSC.
Note
Upon selecting Next, if no party is selected, an error messages stating, Please select party and statement year to proceed is displayed.
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Select Financial Statement: The user must select the different years that need to be considered for the generation of Global DSC.
On the Global Debt Service tab, a user must specify the Cashflow Method that must be considered for the businesses in the application.
The system will fetch all the existing loan contracts of the selected parties and display them in the Contracts section.
All the inflight applications of selected parties are displayed in the Applications section.
Other FI contracts of all selected parties are also displayed.
The system calculates the Annual Debt Service and Annual Debt Service (sensitized) values and displays them to the user.
On the Global DSC tab, the system will fetch all the cashflow values for the selected parties and the debt service values calculated in the Global Debt Service tab.
Based on the configurations, various debt service coverage ratios are calculated and displayed.
Steps
To add a Global DSC statement:
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Log in to your Salesforce account.
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Go to
(App Launcher) > Applications.
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On the Applications tab, and fromthe list of applications, select the required application.
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Go to More> Financial Spreads > Global DSC and then perform the following actions:
Global Cashflow Analysis is a process to assess the combined cashflow of a group of people or business entities as a part of the commercial lending process. This analysis requires a merged analysis of multi-financial statements, which can be from multiple accounts. This analysis enables financial institutions to establish the repayment capability of the parent business entity or to assess the debt serviceability.
Financial institutions use Global Cashflow Analysis to assess the combined cashflow of a group of people or entities to assess their ability to service the proposed debt. The financial statements used in the analysis may be of different types, such as tax returns, company-prepared financial statements, and audit financial statements. On a loan or lease application, the user can select the parties that need to be considered for global cashflow analysis and assess the debt service coverage considering the combined cashflow.
With the Hydrogen release of Q2 Origination, you can configure a global cashflow template that combines cashflow from different financial statements. Considering the combined cashflow, the parties are selected for global cashflow analysis to assess their debt serviceability.
On the application, you can select the parties whose cashflow statements need to be considered for generating a global cashflow statement. The global cashflow analysis will display the overall debt service coverage ratio for selected parties.
Prerequisites
Before you proceed to generate a Global Cashflow Analysis statement, ensure that the following prerequisite is met:
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The Global Cashflow Analysis Template is configured.
Steps
To generate the Global Cashflow Analysis statement:
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Log in to your Salesforce account.
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Go to
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On the Applications tab, select the required application ID.
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Go to Financial Spreads > Analysis Tab. Select the Global Cashflow Analysis tab.
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In the Select Parties list, select the applicable parties.
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From the Select Statement Year list, select the applicable years.
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Select Generate Statement.