How much value does your bank or financial institution place on insights from the analyses of audited financial statements for your credit evaluation process? The answer will probably vary from one bank to another, with the need to obtain from business borrowers and maintain on file updated financial statements the only commonality.

Some banks and financial institutions view audited financial statements as understated, mostly because these are audited for tax purposes, and use qualitative measurements, such as whether another bank has already lent to a particular borrower, in their evaluation of business loan applications. This is dangerous as banks have different risk tolerances and collateral arrangements with their business customers.