Automated K-1 Analysis
Normalized income, 3-year trends, and risk flags from every K-1, 1040, and tax return — consistent on every deal, regardless of which analyst is working it.
What makes tax return spreading the most painful part of underwriting
It's not that analysts don't know how to spread. It's that every deal requires hours of the same mechanical work — with no consistency guarantee.
A multi-entity deal has 8–10 K-1s, a 1065, personal 1040s, and an 1120S — all needing to be cross-referenced, add-backs identified, and passive vs. active income separated. Every time. By hand.
"By the time I finish the K-1s on a 4-entity deal, I've lost half my day before any real analysis starts."
One analyst adds back depreciation. Another doesn't. One catches the one-time insurance settlement. Another misses it. Neither is wrong by policy — but the inconsistency creates credit committee friction and examiner exposure.
"We've had examiners ask why the same borrower was underwritten differently six months apart."
The guarantor has six entities, a spouse's LLC, and two contingent liabilities nobody mentioned in the application. Piecing together their real net worth and liquidity is a forensic exercise on every deal — and something almost always gets missed.
"I found a $1.8M contingent liability in the footnotes of the personal financial. Nobody had flagged it."
The same analysis a senior analyst does in their head — built into every spread
Not just extraction. The insight layer your best analysts apply — documented, source-linked, and consistent on every deal.
K-1s, 1040s, 1065s, 1120S, and Personal Financial Statements read automatically. Normalized income by entity — passive vs. active separated, add-backs identified, and non-recurring items flagged with dollar amounts.
Every adjustment documented and source-linked. Not "we added back depreciation" — "depreciation of $47,200 added back per Schedule E, line 18." The same methodology, applied consistently, regardless of which analyst is working the deal.
Income trend over 3 years, year-over-year change flags, guarantor liquidity ratio, and risk signals surfaced automatically. The insight layer your senior analyst builds in their head — built into every spread.
The difference on every deal
- 2–3 hours per deal spreading K-1s and tax returns by hand
- Add-backs applied inconsistently — depends on which analyst is working the deal
- Non-recurring items caught or missed — no systematic check
- Guarantor net worth assembled from margin notes and memory
- Examiners can ask why the same borrower was underwritten differently six months apart
- Upload once — normalized income across all entities in minutes
- Every adjustment documented with source line and rationale — consistent on every deal
- Non-recurring items flagged automatically with dollar amounts and source
- Guarantor liquidity ratio and 3-year income trend calculated and surfaced automatically
- Same methodology every time — examiner questions answered before they're asked