Financials Statements
Often referred to as the net worthy, this is what is left over after all the liabilities have been deducted from a company’s assets.
Net Equity
This is the risk threshold when we receive Tax Returns and Internals.
5% of net equity
These are the key takeaways on the income statement.
What is increasing bad debt and Large distributions
During a recent FAM validation call, your client requests that we cap in $7k of AME on their cargo vans. The cargo vans will be 20 of 25 recommended FAM orders. In reviewing their account, you noticed that the current AME limit is only $1000, and they have fleet equity of 100k. What are your next steps?
What is run risk on vehicles with AME.
These are 4 “Red Flags” that would cause concern when underwriting credit.
Negative or low equity, negative/low operating cash flow, start up company, risky industry, non-compliance with debt covenants, internal financials, decreasing sales/net income trends, maxed on credit line.
The typical risk threshold for audited financials.
What is up to 10% of Net Equity.
These are the key takeaways on the balance sheet for the assets.
Your client provided you with Internal Financials for the most current year, but their Tax Returns are not available for another 6 months. They need 10 additional vehicles right away. According to the Risk Profile Report, their fleet has current equity of $40k. With the additional 10 vehicles, they will be in an equity position of $10k. In order to increase the line, you update the vehicle classes and open a credit profile adjustment in Edge.
Are there any additional steps that are needed to get the line increased?
Wat is get Risk done on 10 vehicles.
Scenario 4*
This letter that we have received is for for what type of financials.
What is Audited
Scenario 2*
The reason this could be happening.
What is depreciation and mileage patterns
These are the key takeaways for the balance sheet on the liabilities and equity side.
What is current liability more then current assets, have amounts current liabilities.
Look at Scenario 1*
The information that is missing from this review is?
What is the AME Amount.
This is the difference between the reduced book value and the market value.
Fleet risk or Equity
Scenario 2*
What do we need to do to address this?
Need to adjust our depreciation on vehicles.
These are the key takeaways for the statement of cash.
These are 3 ways to mitigate our fleet risk.
Letter of credit, CPR, Equity Roll, Accelerated Depreciation, cross corporate guarantee
Scenario 4*
The concerning information provided in these financial are.
What is in violation of debt covenant
Scenario 5 *
This is our risk threshold in total $ based on the financials from scenario 5.
What is $222K
The -596,006 on the balance sheet represents what.
*HINT - you need to do a formula to get here. *
What is Working Capital
The Edge projected risk on Units to be Delivered is calculated by using values from these Edge screens/fields.
What is are the Vehicle Classes and the Risk tab.