Some points which are generally considered while preparing CMA Data
- The current ratio should be greater than 1.33.
- The sales should be generally 4 or 5 times of the amount of loan.
- There should be sufficient stock to act as collaterally to the loan amount.
- In case, there is another loan, the bank requires the status of the loan and defaults made, if any.
- The loan payback capacity of the firm identified by the cash and bank balance, debtors collection period etc.
- Various ratios are to be computed related to working capital and assets.
- The capital contribution in relation to the loans and liabilities.