Use Case
AI Credit Memo Generation
Complete, examiner-ready credit memos generated in minutes — with every number, ratio, and finding cited to the exact source document, page, and line.
Credit memos shouldn't take longer than the credit decision
The credit memo is the single most important document in commercial lending — it's what credit committees review, what examiners scrutinize, and what documents the institution's underwriting rigor. Yet preparing one is almost entirely manual work.
A typical commercial credit memo requires an underwriter to: spread 2-3 years of financials for each entity and guarantor, calculate and analyze ratios, assess cash flow and debt service capacity, review collateral and market conditions, identify risks and mitigants, check policy compliance, and write it all up in a structured format. This commonly takes 4-8 hours for a single deal.
AI credit memo generation automates the analysis and writing while keeping the underwriter in control of the credit decision. The AI does the manual work; your team applies judgment and makes the call.
How It Works
From documents to credit memo in minutes
Upload deal documents
Drop in tax returns, financial statements, bank statements, rent rolls, and supporting documents. Aloan identifies, categorizes, and matches documents to the correct entities automatically.
AI analyzes and spreads everything
Financial data is extracted and spread with source citations. Ratios are calculated. Risks are flagged. Cash flow is analyzed across entities. The AI reads every line of every document — not just summaries.
Complete credit memo generated
A complete credit memo is produced in your institution's format: borrower overview, financial analysis, ratio commentary, risk assessment, policy exceptions, and recommended action. Every number cites the source.
Review, adjust, and present
Your underwriter reviews the analysis, adds judgment and context, makes any adjustments, and presents to the credit committee. Verification takes minutes because every number links to the original document.
Credit Memo Contents
What's inside an Aloan credit memo
Every section is populated with data extracted from source documents — with citations your team and examiners can verify instantly.
Entity structure, ownership, management, industry, and relationship history
Loan amount, purpose, term, rate, collateral, and repayment structure
Multi-year spreads with trend analysis and year-over-year comparisons
DSCR, leverage, liquidity, and custom ratios with commentary
Multi-entity cash flow consolidation with adjustments for non-cash items
Valuation, LTV, environmental considerations, and market conditions
Identified risks with corresponding mitigants and compensating factors
Exception flags for credit policy violations with severity and explanation
Structured recommendation with conditions, covenants, and monitoring requirements
The citation difference: why source traceability matters
Most AI tools generate plausible-sounding output. In commercial lending, plausible isn't enough — every number needs to be verifiable. A credit memo that says "DSCR is 1.35x" without showing where that number came from creates more work during review, not less.
Aloan's credit memos include source-document citations for every extracted value. When the memo states revenue of $4.2M, that figure links to the exact line on the exact page of the specific tax return or financial statement. When it flags a declining trend, it cites the specific year-over-year data points.
This matters for three audiences: underwriters who need to verify and trust the analysis before presenting it, credit committees who need confidence in the data supporting the recommendation, and examiners who need to audit the institution's underwriting rigor.
Frequently asked questions
What is AI credit memo generation?
AI credit memo generation uses artificial intelligence to produce complete commercial loan credit memos from source documents. Instead of an underwriter manually writing a memo over several hours, AI reads the financial documents, analyzes the data, and generates a structured credit memo with financial analysis, ratio calculations, risk assessment, and policy compliance — all backed by citations to the original source documents.
How does Aloan generate credit memos?
Aloan reads every uploaded document (tax returns, financial statements, bank statements, rent rolls), spreads the financial data with source citations, calculates ratios, flags risks and policy exceptions, and generates a complete credit memo in your institution's format. Every number and finding in the memo cites the exact source document, page, and line — so your team and examiners can verify any claim instantly.
How long does AI credit memo generation take?
Aloan generates a complete, source-cited credit memo in minutes after documents are uploaded. By comparison, manual credit memo preparation typically takes 4-8 hours for a standard commercial deal, and longer for complex multi-entity or CRE transactions.
Can I customize the credit memo format?
Yes. Aloan generates credit memos in your institution's existing format and structure. You configure the sections, required fields, analysis templates, and presentation format — the AI fills in the analysis with cited data from the source documents.
Are AI-generated credit memos examiner-ready?
Aloan credit memos are designed specifically for examiner review. Every financial figure, ratio, and finding includes a citation to the source document, page, and line. Examiners can verify any number in the memo with a single click, without digging through original documents manually.
What goes into an AI-generated credit memo?
A complete Aloan credit memo includes: borrower and guarantor overview, deal structure and terms, financial analysis with multi-year spreads, ratio analysis (DSCR, leverage, liquidity), cash flow analysis, collateral assessment, risk factors and mitigants, policy exception flags, and a recommended credit action — all with source-document citations.
Does the AI make credit decisions?
No. Aloan is a decision-support tool, not a decision-making tool. The AI prepares the analysis, spreads the financials, flags risks, and generates the memo. Your underwriters and credit committee review the analysis and make all lending decisions. The AI handles the manual work; humans handle the judgment.
How is this different from a credit memo template?
Templates provide structure but still require manual data entry and analysis. Aloan goes further — it reads the source documents, extracts and analyzes the data, and fills in the memo with cited findings. The output is a complete analysis, not just a formatted blank to fill in.
See an AI credit memo from your actual documents
Upload a deal package. Get back a complete, source-cited credit memo in minutes.
No setup fees · Deploy in days · Works with your existing LOS