Monthly lender reporting package checklist for CAS teams

Why use a checklist for the lender package?

The package is a recurring deliverable with a hard deadline, and the credit agreement defines what goes in it. Sample clauses on Law Insider's monthly reporting package page and the reporting covenants page list the usual schedules, such as A/R and A/P agings, transaction reports and board-approved projections, but only your client's agreement is binding.

CAS teams see every one of these schedules each month, which also means they see how much operating history a client has. The checklist below keeps the package complete and adds two quiet checks.

The package checklist

Core financials

• Monthly balance sheet and income statement with cash flow, in the agreed format
• Year-to-date and prior-year comparison
• Management commentary on variances the agreement requires
• Bank and loan reconciliations tied to the general ledger

Schedules

• A/R aging and A/P aging at the cutoff date
• Inventory report, if inventory is in the base
• Debt and lease schedule
• Capital expenditure and insurance updates if required

Compliance

• Covenant calculations, using the agreement's definitions
• Officer's compliance certificate (see the covenant compliance certificate template)
• Borrowing base certificate for asset-based facilities
• Notice of any default, litigation or material event within the agreed time

Forward-looking

• Board-approved budget or projections, with changes explained
• 13-week cash flow if the lender requests one
• Material contract list with renewals and terminations

What is the extra check on exclusive licenses?

An exclusive license of company records is a contract the lender may care about. Add one line to the checklist each quarter:

• Does the agreement require notice or consent before an exclusive license of intellectual property, or treat it as an asset disposition? Note the section and the answer.

If the answer is yes and a license is under discussion, raise it with the client before it goes to buyers. Nothing is binding on the company until it signs, so early conversation costs little.

How should you read the results?

The quiet fit flag

While assembling the package, note clients with these features. It is a mental screen, not a sales motion.

• 50+ full-time employees at peak (contractors excluded)
• Several years of documented operations
• Records across many systems, ideally with archived tools
• A sponsor you already meet monthly: owner, CEO or CFO
• No restrictions in the credit agreement, or a lender relationship strong enough to ask

Run the company fit checker when several of these line up, and read the who qualifies page for the baseline.

Who makes the introduction?

In many firms the CAS lead sees the monthly package and the relationship partner owns the client. Decide who makes the introduction before anyone raises it; the guide on relationship partner versus CAS lead walks through that choice. The process is: the partner introduces, SourceX qualifies, the company completes a data inventory, price and terms are agreed, buyers review, and the deal closes with payment about 60 days after invoicing once the buyer selects the data. The partner never touches the records.

Independence and ethics

Fee rules matter here. The AICPA Code includes provisions on commissions and referral fees that restrict CPAs mainly where the firm performs attest services for the client, and permitted fees must be disclosed. State boards can be stricter. This is general information, not legal, tax or financial advice. Confirm with your own professional body and firm policy before acting.

How rewards work

Partners earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals, capped at $100,000 cumulative per referred company. The reward is paid only after the buyer pays and SourceX receives its fee, it is never deducted from what the company receives, and no reward is guaranteed. See the program terms and CAS growth at top accounting firms.

When to skip it

Skip when the client is under the headcount baseline, when the records belong to the client's customers, when data was deleted, or when your firm's independence rules prevent an introduction.

Next step

Pick one client whose package you assemble next month and run the quiet flag. If it passes, register as a partner and make the introduction, or have the sponsor apply at sourcex.si/apply. The referral opportunities for fractional CFOs page covers the wider role.