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Lenders Get Better Results with Higher Risk Loans

KGI Advisors Inc., a financial advisory firm, often represents lenders involved in higher risk financing transactions - new loans as well as restructuring or extension of existing loans.

Many lenders ask KGI to produce a Quality of Cash Flow Projections (QCFP) report. Benefits of a QCFP report to a lender include:

  • Credible analysis of a borrower's liquidity and projected cash flow

  • Strategies and analysis for loan structuring and pricing

  • An independent and objective third-party professional report

  • Completion of critical transaction due diligence

  • Additional talent and resources to efficiently complete transactions

  • Compilation of key observations and findings, assumptions, and data

A QCFP report is a valuable resource to lenders for:

  • New loans in higher risk situations, including bridge financings

  • Loan restructuring

  • Additional lending required by an existing borrower

  • Forbearance or extension to complete a capital transaction, including a sale or refinancing

KGI's Quality of Cash Flow Projections analyze and assess:

  • Income statement and balance sheet integration

  • Credibility of financial models and underlying assumptions

  • Financial covenants and credit ratios

  • Profitability improvements

  • Historical to forecast/projection comparisons

  • Borrowing base and collateral coverage

  • Reserves and one-time/non-recurring items

  • Sensitivities and alternative scenarios

Depending upon the lender's requirements, KGI can deliver either a written report or a compilation of critical data and analyses. A QCFP is typically completed in 2 to 6 weeks, depending on the scope of work and the availability and quality of the company's data and information.

KGI welcomes your questions about our Quality of Cash Flow Projections process.


Since 1984, KGI has advised lenders and helped companies assess and complete higher risk financing transactions.


KGI advises companies and organizations facing complex and urgent business matters, helping these entities significantly improve profitability and cash flow, restructure debts and operations, resolve business disputes, provide litigation support services, and facilitate finance and sales transactions.


Contact Information

KGI Advisors Inc. 310-829-0255 ext 220

Steve Green sgreen@kginc.com

Gerry Seli gseli@kginc.com

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