CMA stands for Credit Monitoring Arrangement. Banks use CMA data to judge how a business has performed and whether it can repay a proposed loan.
It generally contains past financial performance, estimates for the current year and projections for the coming years, along with working capital assessment and ratios such as the current ratio and debt service coverage.
Banks commonly ask for it when you apply for cash credit, an overdraft or a larger term loan. Formats and requirements differ between banks, so confirm the format with your branch.
The projections must be realistic and consistent with your financial statements. Mismatched numbers are a common reason for queries.
General information as of October 2026. Rules change, so confirm your specific case with a qualified professional.
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