Main Points of CMA

Some points which are generally considered while preparing CMA Data

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

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