PRIORA® FINANCIALYZER® FEATURES EXTENDED:

1. Loan Detail – Priora® Financialyzer® is a business loan underwriting system designed for business lenders dedicated to building strong relationships with motivated, dedicated business owners of all sizes. Financialyzer® is truly an effective system for lenders when it comes to Applying Financial Literacy® in a borrower relationship. Financialyzer® offers several worksheets that can be shared with the business owner to establish a trusting relationship with the financial institution. Financialyzer® is a system that will: build a very large business loan portfolio database; manage the risks in that database; manage several key ticklers; accepts an unlimited number of query reports designed and generated by the financial institution; and, generates an objectively determined risk rating for each credit relationship. When used as designed, Financialyzer® creates improved systems and procedures in the business loan department. The result? You will be ready for the next exam.
2. Main Menu – The Main Menu of Financialyzer® illustrates a component based system of worksheets to be used in any combination to meet the needs of any borrower. Financialyzer® organizes data in a consistent presentation format to accommodate credit facilities such as term loans, lines of credit, vehicles, real estate investment properties, etc. Many of the worksheets in Financialyzer® can be presented to the borrower to educate them about your loan approval process. This is a significant relationship building approach to reducing the risk in the business loan portfolio and ensuring the success of the borrower.
3. Income Statement – The Loan Presentation report includes a Loan Exposure Table. This table illustrates the debts owed by the Borrower, Related Borrower, and an Aggregated Borrower. It also includes debts of these parties to Other Lenders. Loan participations sold and SBA guaranteed portions are deducted from the gross loan amount to arrive at the Net Exposure to these borrowers. This Loan Exposure Table is a concise summary of all the exposure of the financial institution to all or any of these entities.
4. Economic Analysis – The Economic Analysis is a worksheet designed to evaluate the merits of a commercial real estate investment, whether for a residential property or a mini-mall. The first slide presents a 3 year financial history of the property and a Pro-Forma for the next year. The second slide presents the Debt Service Coverage based on the effective rate plus four additional ‘stress testing rates’ determined by the lender. The system also determines the Occupancy Needed to Break Even based on the weighted average rent per square foot (for mini- malls). Capitalization rates can be entered to determine the Loan To Value percentage as one indicator of the value of the property.
5. Cash Flow Analysis – The Cash Flow Analysis – All-In Personal will evaluate the ability of up to 10 individual guarantors to support the debt service obligations of a borrowing entity. Taking data from the individual’s annual 1040 tax return, this page begins with the Cash Adjusted Gross Income of the individual, then subtracts deductions and federal and state taxes due. The lower part of this page calculates the ratios to determine the financial strength of the personal cash flow of the guarantor to augment the ability of the borrowing entity to service the entity debt obligations.
6. Collateral Evaluation – The Collateral Evaluation – Business will determine the discounted values of the collateral presented based on the discounts recommended in the Loan Policy. Prior liens can also be entered if they apply, like delinquent real estate taxes. This analysis provides coverage of Current Assets to Current Debt and the Long Term Assets to Long Term Debt coverages. The second page presents the global evaluation of the collateral coverage combining both Current and Long Term to total debt.
7. The Business Lending Risk Rating Matrix – The Business Lending Risk Rating Matrix objectively assigns defined values to eight of the nine dimensions of the business being measured. Objective is critical to remove lender’s personal prejudices for or against a credit request. The first slide shows the nine dimensions in the upper left chart, each with a ‘weight’ assigned to that dimension. Lenders can modify these weights based on industry or changing economic times. The total of the weights must equal 20 or the user cannot leave this page. The Numeric Score shown is from the table presented on the second slide. The definitions for each numeric score within each dimension are established per the loan policy and guidelines at the financial institution. This constitutes the ‘objectivity’ referred to above. The chart in the upper right corner of the first slide illustrates the seven categories each loan will be named. The Risk Rating score corresponds to each of the seven defined Watch/Classification shown. For example, a score of 52 may warrant ‘watching’ while a score of 62 may not. Both are classified as Acceptable. Lenders can make changes to these definitions. Additionally, lenders can prepare multiple Risk Rating Matrices for a multitude of industries, and import the appropriate Risk Rating Matrix into the system. Finally, there is a comment area to explain the Risk Rating assigned. If necessary, there is also a method to override the calculated Risk Rating and support it with comments.
8. Projected Income Statement – The Projected Income Statement is a very powerful tool with which to discuss the borrower’s ‘projections’ for the next year. It is effective and it engages the borrower in the process. Based on the column title “Calculated Projection” (a linear regression calculation of 3 or more years of historical income data produces the “Calculated Projection”, a statistical projection not to be used to make loan decisions. It is to be used as a ‘talking point’ with the borrower to arrive at what the owner believes the business will do next year.) the lender can discuss the future performance of the company with the borrower in a very practical way. Once the borrower shares their projection information with the lender (takes about 30 minutes) the lender enters that data into the left column of the Trend-Line Projections. The linear regression formulas then project out two more years showing the borrower and the lender what the borrower believes the business can generate in cash available for debt service. When the borrower signs and dates this page, validating the projections shown, the lender now has good information to consider when deciding whether or not to extend funding.
9. Loan Presentation – The Loan Presentation shown in this slide is a system for the lender to determine which of the components should be included in the final Loan Presentation going to loan committee. The yellow portion on the right represents the fixed, unchangeable, minimum format of the loan presentation report. Items in the left column can be move to the right column and arranged in any order desired. When printed from this format, the Loan Presentation can be organized into any order the lender determines to be the best presentation. This system will put page numbers on all printed pages and will accommodate the size of text in any of the many comment boxes located throughout Financialyzer®.
10. Debt Consolidator Calculator – The Debt Consolidator Calculator is a very powerful debt management tool. It demonstrates how multiple debts can best be consolidated into one loan, using two different debt consolidation methods. The first method is shown as Option 1 – Weighted Average Interest Rate Only while the second is Option 2 – Weighted Average Interest Rate and Term (Weighted Average Remaining Amortization). Notice it will consolidate up to 20 loans/debts. Each loan can be imported or excluded from the calculation to arrive at the most beneficial combination of debts to create the most beneficial consolidation of debts. This is another extremely educational tool for business owners.

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