For Commercial Loan Officers ·
What you'll accomplish
You'll learn to paste financial ratio data into Claude and get back a polished financial analysis narrative: the paragraph in your credit memo that explains what the numbers mean. What used to take 20–30 minutes of translating spreadsheet data into prose now takes 5 minutes.
What you'll need
This guide assumes you've already spread the financial statements and have the key ratios calculated. Claude writes the narrative; you do the math.
Key data to have ready:
Go to claude.ai, sign in, click New conversation.
Use this prompt structure:
Write a financial analysis narrative for a commercial bank credit memo based on these figures:
Business: [business name and type]
Loan requested: $[amount] [loan type]
INCOME STATEMENT HIGHLIGHTS:
- Revenue: [2022], [2023], [2024] ($)
- Net income: [2022], [2023], [2024] ($)
- Net profit margin: [2022]%, [2023]%, [2024]%
CASH FLOW / DEBT SERVICE:
- DSCR: [2022], [2023], [2024]
- Annual debt service on proposed loan: $[X]
- Global DSCR (including all existing debt): [X]x
BALANCE SHEET:
- Current ratio: [X]x
- Total debt/equity: [X]x (or debt/EBITDA)
- Notable items: [e.g., "significant equipment assets" or "seasonal working capital line"]
Write 3-4 paragraphs covering: revenue and earnings trends, debt service capacity, balance sheet position, and overall financial assessment. Write for a bank loan committee audience.
What you should see: 3–4 structured paragraphs covering income trends, DSCR analysis, balance sheet, and a summary assessment.
After reviewing the draft, refine specific elements:
Once satisfied, copy the narrative into the Financial Analysis section of your credit memo. Add your own commentary for anything highly deal-specific.
When DSCR is close to minimum threshold:
[Same prompt as above but add:] Note that the 2022 DSCR of 1.08x was near our minimum 1.20x threshold. Acknowledge this in the narrative while noting the improving trend, and explain why the trend is sustainable.
For a borrower with a one-time event:
[Add to prompt:] In 2023, the borrower received a one-time insurance settlement of $85K. The normalized 2023 net income (excluding the settlement) was $112K rather than $197K. Write the narrative using normalized earnings.
For a borrower with seasonal cash flows:
[Add:] This business is highly seasonal. 70% of revenue is earned April through September. DSCR is calculated on annual basis. Note the seasonal nature in the narrative and its impact on monthly cash flow during off-season.