Reading cash-flow bridges inside loan applications · Field Notes

A cash-flow bridge in an application is often a single page that looks tidy. Our fieldwork treats it as a claim that must be rebuilt. We start from the profit figure on the face of the financial statements, then ask which adjustments are mechanical and which are judgment.

Working capital swings deserve special attention in seasonal businesses common across southern Taiwan’s manufacturing belt. A bridge that ignores inventory build before peak season can overstate available cash for debt service. Conversely, a one-time tax refund can make a weak year look temporarily strong.

When we write findings, we separate arithmetic errors from optimistic assumptions. Both matter to a committee, but they call for different follow-up. Arithmetic is fixed; optimism is a credit judgment the lender must own.