1. Evaluating a Borrower’s Prospective Financial Statements in Loan Underwriting

Evaluating a Borrower’s Prospective Financial Statements in Loan Underwriting

Evaluating a Borrower’s Prospective Financial Statements in Loan Underwriting
Event ID: 17621
Not for Sale
Recording: 15111

Duration: 90 minutes, including question and answer period.
Presenter(s): Gary Deutsch, CPA, president, BRT Publications, LLC
Price: $299.00, On-Demand includes full audio presentation, question and answer session, and presentation slides.
Who Should Attend? Loan officers, management, financial officers, credit officers, credit analysts, portfolio managers, credit review auditors, persons responsible for loan reviews


Lenders need the best possible information from borrowers seeking bank financing. One excellent source of information that companies can provide to banks during the loan underwriting process is prospective financial statements. These statements provide bankers with insight into the assumptions management is making to grow their business over a three to five-year time frame. Although borrowers don’t have a crystal ball, they can ensure that their assumptions pass the scrutiny of CPAs who can render an opinion on the adequacy of management’s assumptions.

The company’s outside CPA can be engaged to examine prospective financial statements which can include a forecast or projection or both for use by the bank in the underwriting process. CPAs can review management’s assumptions and ensure the reports are in the proper format to add credibility for banks.

To achieve the benefits of prospective financial statements, lenders should understand how CPAs examine these reports according to AICPA guidelines. For instance, lenders need to understand the difference between a financial forecast and a financial projection and when companies use one or the other, or both. They also need to understand how prospective financial statements relate to the company’s budget and the information that should be included in the statements.

Please join Gary Deutsch, CPA MBA, as he discusses how prospective financial statements can benefit banks in the lending process and how to ensure that the statements are properly prepared to assist with underwriting and loan approval.


Some topics that will be covered in this webinar include:

  • What are Prospective Financial Statements?
  • When companies use prospective financial statements including how they relate to a company’s budget.
  • Understanding the difference between a financial forecast and a financial projection
  • When can financial statements be projected versus forecasted?
  • Engaging a CPA to prepare and report on prospective financial statements.
  • What are the minimum requirements for preparing prospective financial statements?



Your conference leader for “Evaluating a Borrower’s Prospective Financial Statements in Loan Underwriting” is Gary Deutsch, president, BRT Publications LLC. Mr. Deutsch is a licensed CPA in Maryland and has a B.A. in accounting and an MBA in finance from Loyola University Maryland. He has also achieved the Certified Management Accountant, Certified Internal Auditor and Certified Bank Auditor designations. Mr. Deutsch is the founder and president of BRT Publications LLC. Mr. Deutsch has trained thousands of financial institution professionals in all aspects of risk management and has written numerous books in the U.S. and Europe on topics such as credit risk, internal audit and compliance with Generally Accepted Accounting Principles. Mr. Deutsch has extensive risk management and internal audit experience through his association with financial institutions of all sizes as well as through his role leading the KPMG financial institution consulting practice in the Mid-Atlantic region.


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