Substantiate EBITDA and SDE add-backs with bulletproof audit trails.
A catalog of allowable adjustments, a written justification engine and a defensibility rating that tells you what a credit officer will push back on.
Allowable add-back catalog
Pre-configured templates for owner excess salary, non-recurring legal and consulting fees, personal auto and travel run through the business, family health insurance, one-time facility moves and more, each with the evidence a lender expects.
Written justification engine
Every adjustment prompts for context, for example 'Non-recurring patent litigation fees incurred in 2024; invoices attached in Appendix B', and attaches supporting documents to the memo.
Real-time bridge
A waterfall from reported net income through interest, depreciation and each adjustment to cash flow available for debt service, updating as you tag items.
Lender defensibility rating
Aggressive or unallowable adjustments such as speculative future cost savings or unsubstantiated cash expenses are flagged before submission, with the SOP or underwriting rationale a reviewer will cite.
Specification
- Catalog
- 25 allowable, conditional and disallowed categories
- Evidence
- Invoices, payroll, leases, settlements attached inline
- Rating
- Defensible · Conditional · Likely objection
- Bridge
- Net income → EBITDA → SDE → CFADS
- Memo exhibit
- Add-back schedule with justifications
- Limits
- Lender-specific caps on total add-backs
Main Street acquisition · $180,000 of adjustments defended
- 1Owner salary of $265,000 versus a documented $120,000 replacement manager: $145,000 add-back tagged Defensible with payroll register attached.
- 2Personal vehicle lease of $14,400 run through the business: tagged Conditional pending lease agreement; broker uploads it and the rating clears.
- 3Projected $60,000 saving from a planned headcount cut: tagged Likely objection and excluded from CFADS automatically.
- 4Bridge exhibit shows $292,800 reported net income rising to $643,980 CFADS with every step cited.
“We defended $180,000 of owner add-backs on a deal the first lender had already declined. The written justifications did the work.”
Questions
No. The catalog encodes common SBA and commercial underwriting standards and rates defensibility. The broker chooses what to include, and the lender makes the final determination.
Yes. Custom categories require a written justification and are rated Conditional until evidence is attached.
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Upload a set of sample tax returns and generate a complete, lender-ready credit memo on your first day.