Borrower and guarantor cash flow is based on personal or business tax returns. Upon uploading tax returns (and corresponding K1s) for each of the borrowers and guarantors, Blooma will parse and add the financial data to the system to be spread. Please note that two consecutive years of tax returns are required for Blooma to calculate a proforma cash flow value. Once two consecutive years of tax returns have been uploaded and parsed, Blooma will spread the annual values to calculate the cash flow available to service the subject Deal debt. Corresponding debt service coverage ratios will also be calculated at the individual and global level based on the proforma spreads.
Users can adjust any of the parsed cash flow line items. This may be necessary when accounting for one-time contributions, one-time distributions, alimony, etc. To adjust a line item, users must navigate to the "Cash Flow" tab within the contact profile.
Users must then select the year containing the line items they would like to adjust. Users can do this by selecting one of the years available, shown above.
Once you've selected the year they would like to adjust, you can enter your adjusted value along with a corresponding reason for the adjustment (required to make an adjustment). You can also open and view your uploaded documents on the left. Once you've made any edits, save your work by using the save button in the top right.
Once the adjustment and the reason for the adjustment have been saved, the updated value will be reflected on the Cash Flow page. The adjustment will update the proforma cash flow value for that Contact, and will also update the global cash flow value available to service debt for the Deal.