The Loan Management System (LMS) offers two systems of standardized scoring: one for commercial borrowers, and one for agricultural borrowers.  These scoring systems allow your organization to configure parameters and an objective score is then calculated, with a corresponding rating assigned.

The configuration is flexible, and the rating is also configured to match your loan policy or desired result.

For example, you can create configuration that a particular Debt Service Coverage Ratio for a borrower will be assigned 5 points, on a scale of 1 to 10.  A lower DSCR would be assigned a different number of points, and so forth.  A large number of pre-defined ratios are available, from which you can choose which ratios to use, and user-defined parameters can also be configured.

The borrower then has a scoring worksheet, which displays the results based on your configuration.  There may only be a few points of data entry required (for the user-defined parameters), and the rest is calculated from the spread data.  At the bottom, comments can be entered regarding the score results and the assigned rating.  The score can then be printed for presentation to a loan committee, or perhaps to be kept in the loan file as part of an annual review.

For more information on Commercial and Agricultural scoring, please view our most recent Lunch & Learn recording (log-in required).  Lunch and Learn sessions are free training sessions, conducted by our knowledgeable training staff, and are held on the first and third Wednesday of every month.