Global cash flow analysis

Global cash flow analysis combines the cash flows of a business and its owners or guarantors into one view of total repayment capacity. It is standard practice in commercial and community bank lending, where the borrower and the guarantor are often financially intertwined and neither can be assessed in isolation.

How it is built

Start with business cash flow, typically EBITDA or a defined cash flow figure from the spread financials. Add the guarantor’s personal income from tax returns and a personal financial statement. Subtract all debt service, business and personal, plus living expenses and contingent liabilities. What remains is the cushion that actually services the proposed loan.

Why it matters

A business can look like it covers its own debt while the owner is stretched thin across personal obligations, or the reverse. Global cash flow catches both. It is also a frequent examiner focus, so the work needs to be consistent and documented.

How VisibleSignal automates global cash flow

VisibleSignal spreads the business returns, the personal returns, and the personal financial statement, then assembles the global cash flow with every figure traced to its source line. The combined DSCR is computed the same way on every deal, which gives loan review and examiners a consistent, defensible file.

See also: DSCR, EBITDA, financial spreading.