Credit and underwriting glossary

Clear definitions of the terms credit teams use every day, written by people who spread financials for a living. Each entry explains what the term means, the formula where there is one, and how vishwa.ai computes it automatically from source documents.

Workflow terms

• Financial spreading: standardizing a borrower’s financials into a common template.
• Credit memo: the underwriting document that goes to the credit committee.
• Global cash flow analysis: combining business and guarantor cash flows.
• Covenant monitoring: tracking covenant compliance after close.

Metrics

• DSCR: debt service coverage ratio.
• NOI: net operating income.
• Cap rate: a property’s unlevered yield.
• Debt yield: NOI over loan amount.
• EBITDA: a proxy for operating cash flow.
• LTV: loan-to-value.

Looking for the bigger picture? Start with what an underwriting OS is.