Financial spreading and credit memos drafted from the documents, with every figure traced to its page.
Bluegrass builds credit analysis systems for commercial and CRE lenders, banks and credit unions. They spread financial statements and tax returns into your template and draft the credit memo for your analysts and credit officers to edit and approve.
Analysts spend much of their week keying figures rather than analyzing them, then rebuild the memo from the same documents, so credit decisions often take weeks.
What spreading and credit memos involve today
An analyst keys the borrower's financial statements, the owners' and guarantors' tax returns and, for real estate, the rent roll into the spreading template. Debt service coverage, leverage and global cash flow come from the spread, and the credit memo builds on them.
Statements arrive in every layout, and the work returns at each annual review. Every figure can be traced and the memo follows a set structure, so AI can prepare both reliably while the analyst forms the view for committee.
How automated spreading and memo drafting work
- 01
Collect the package
Statements, tax returns, debt schedules and property reports are gathered from the loan origination system, the borrower portal and email, and identified by entity, period and type.
- 02
Spread the statements
Each line is mapped to your chart of accounts and template with its source page linked, and anything ambiguous, such as a restatement, is held for the analyst.
- 03
Calculate and reconcile
Ratios, debt service coverage and global cash flow are calculated under your credit policy's definitions, and the spread is checked against the statements' totals and prior periods.
- 04
Draft the memo
The memo is drafted in your format from the spread, the request and the relationship history, listing strengths, weaknesses and policy exceptions for the analyst to judge.
- 05
Review and record
The analyst and credit officer edit and approve the spread and memo; their changes feed the evaluation set and the final versions are filed to the loan record.
Where people stay in the loop
The risk rating, recommendation and credit decision stay with your analysts, credit officers and committee; the system neither rates borrowers nor predicts default. Spreads are first tested against your analysts' own on past deals.
The systems it works with
The system works with your loan origination system, spreading template and document store, and writes the spread and memo back to the loan record.
When to build it, and when to buy it
Spreading tools and larger loan origination platforms now extract figures from statements, and if your borrowers mostly send standard statements, that feature may do most of the work.
A custom build makes sense when your memo format follows your own credit policy, when packages are heavy with tax returns and guarantor statements, or when spreading should also feed covenant monitoring.
We hold no reseller agreements, partner quotas or revenue share with any vendor, so a recommendation to buy is made on its merits.
What this work costs you today
A quick way to put a number on the problem before talking to anyone, using your own figures rather than ours.
Enter your volume and the minutes each one takes to see what the work costs in a year.
The numbers stay in your browser and are not stored or sent anywhere. Bring the figure to the first call, since it is the baseline any system should be measured against.
Questions about financial spreading and credit memos
- Does it assign risk ratings?
- Risk ratings stay with your credit officers under your rating policy. It prepares the spread, ratios and memo that support the rating but does not score borrowers or predict default.
- Can it spread tax returns and personal financial statements?
- It reads business and personal returns, K-1s and personal financial statements, and builds global cash flow under your policy's definitions. Accuracy is measured on your own deals before anything is promised.
- Will it work with our spreading template?
- It fills your existing template and chart of accounts, whether in your loan origination system, a spreading product or a spreadsheet.
Related systems
A senior team that has done this before
We are a small, entirely senior team with fifty years of combined AI engineering, multiple granted patents and Y Combinator founders, from Yale, MIT, McKinsey, Goldman Sachs, Microsoft and Vista Equity Partners. The people who scope your work are the people who write the code.
Selected work
We built the AI transformation roadmap for a top-50 P&C brokerage, and it is saving the firm millions of dollars in vendor fees it did not need to pay.
Clients include some of the largest banks, RIAs, fintechs and AI labs, as well as a top-3 P&C carrier, a top-10 P&C brokerage, a top-5 trucking brokerage, a leading specialty MGA and a leading trucking MGA.
We run only 3 to 5 engagements at a time, so that every client works directly with the senior team.
About the team- Dozens
- of insurance companies, RIAs, banks and fintechs we have worked with
- 50 yrs
- combined AI engineering experience
- 10+ Patents
- granted to members of the team
- 100%
- of the IP we build is assigned to you
Find out whether this is worth building for your business.
A 30-minute call with an engineer usually shows whether this is worth building. Within a week you will have a free written point of view, including whether a packaged product would serve you better.