Write a credit memo for a commercial loan request
A structured credit memo covering the borrower, repayment capacity, collateral, risks, and a clear recommendation for the credit committee.
The prompt
Help me write a credit memo for a commercial loan request.
Borrower and business: [business name or placeholder, industry, years in business, ownership]
Request: [amount, product - e.g. "term loan", "revolving line", "CRE mortgage", purpose, term, amortization, proposed rate]
Financials: [PASTE 3 years of revenue, EBITDA, net income, debt, plus interim figures]
Existing debt and proposed debt service: [SCHEDULE]
Collateral: [type, appraised or book value, appraisal date, lien position]
Guarantors: [names as placeholders, personal financial statement highlights]
Our policy limits: [e.g. "minimum DSCR 1.25x", "max LTV 75%", "max leverage 3.5x"]
Write the memo with these sections:
1. Request summary and recommendation (approve / approve with conditions / decline) in 3-4 sentences.
2. Borrower background and management.
3. Repayment capacity: debt service coverage ratio (historical and pro forma), leverage, liquidity, and the main assumptions. Show each calculation.
4. Collateral analysis: loan-to-value, advance rates, and the secondary source of repayment.
5. Guarantor support and global cash flow, if data allows.
6. Key risks and mitigants, in a table.
7. Proposed structure: covenants, reporting requirements, conditions precedent.
8. Policy exceptions, each stated plainly with its justification.
9. Proposed risk rating, with the drivers.
Rules:
- Use only the numbers I give you. Mark gaps as [CONFIRM] and never invent figures.
- Flag any ratio that breaches my policy limits.
- Write for a credit committee: direct, specific, no sales language. The final credit decision rests with the bank's approval authorities.
Highlighted [brackets] are blanks to replace with your own details.
Fill in the blanks and use this promptMore Finance & Accounting prompts
What to fill in
- SCHEDULE
- type, appraised or book value, appraisal date, lien position
- e.g. "minimum DSCR 1.25x", "max LTV 75%", "max leverage 3.5x"
- CONFIRM
How this prompt is built
This prompt follows the Few-Shot structure (Few-shot prompting). A few-shot prompt includes one or more worked examples of the input and the output you want, so the model can copy the pattern instead of guessing it.
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