Build a Semi-Automated Credit Memo Workflow with Claude

What This Does

Combines Excel spreading with Claude for narrative generation into a repeatable workflow that produces a near-complete credit memo first draft for a standard C&I deal in 30-45 minutes. You handle the judgment and approval; Claude handles the writing.

This is a process design. You'll be building your own system, not installing software.

Before You Start

• You have Claude.ai Pro
• You have a standard credit memo template in Word
• You have your spreading model in Excel
• Confirm data governance policy: what borrower information can you upload?

The Workflow

Phase 1: Spread and Calculate (15-20 minutes, Excel)

Use your existing spreading model. Calculate all ratios before moving to Claude. Key outputs you'll need:

• 3-year income statement (revenue, EBITDA, net income)
• Key ratios for each year (DSCR, Debt/EBITDA, current ratio, gross margin)
• Balance sheet snapshot (total assets, total debt, equity)
• Stress test results (1-2 scenarios)

Create a "Claude Input Summary" tab in your Excel model:

• One table per section: income statement, ratios, stress test
• Add a "Narrative notes" column: brief analyst observations about each metric

Phase 2: Generate Narrative (10-15 minutes, Claude)

Open your Credit Analyst Claude Project (or a fresh Claude Pro conversation). Use a master prompt that produces all sections at once:

I'm preparing a credit memo. Generate professional memo sections based on the data and notes below. Use formal bank lending language throughout.

**DEAL SUMMARY:**
- Borrower: [name] | Industry: [industry] | Request: $[X]M [type]
- Purpose: [use of proceeds] | Term: [X years] | Rate: [rate]
- Collateral: [primary collateral] | Guarantors: [names]

**FINANCIAL DATA (3-year spread):**
[Paste your income statement table from the "Claude Input Summary" tab]

**KEY RATIOS:**
[Paste ratio table]

**STRESS TEST RESULTS:**
[Paste stress scenarios and outcomes]

**ANALYST NOTES:**
[Paste your narrative notes column: "Revenue decline in FY2022 due to customer loss; recovered in FY2023 with new contract" etc.]

Generate the following sections:
1. Company Overview (2 paragraphs)
2. Financial Analysis (3-4 paragraphs interpreting the trends)
3. Collateral Analysis (1-2 paragraphs)
4. Stress Test Analysis (1-2 paragraphs)
5. Key Risks and Mitigants (bullet list, 3-4 items)
6. Recommendation (1 paragraph, recommend approval)

Phase 3: Assemble and Edit (10-15 minutes, Word)

Paste Claude's output sections into your bank's Word credit memo template. Edit:

• Bank-specific terminology and policy references
• Any factual corrections
• Your personal assessment of deal quality
• Loan committee presentation order

Add sections Claude can't write: deal approval authority routing, rate sheet, and your compliance checklist.

Tips for Scaling This

Build a prompt library: Save your master prompt as a text file. Keep variants for:

• C&I standard (this workflow)
• CRE term loan (adds market analysis section)
• SBA 7(a) (adds program eligibility section)
• Annual review (different structure than new money)

Time yourself: First run will take longer as you adjust the workflow. After 5-6 deals, this should be sub-45 minutes for a standard C&I package.

Maintain quality control: Add a "Claude-drafted section" note in the Word document revision history. Your senior credit officer should know which sections were AI-assisted. Remove these notes before final submission.

What This Doesn't Replace

• Your credit judgment about whether to approve
• Covenant negotiation
• Relationship management
• Any sections requiring your personal attestation (credit officer signature lines)

This workflow assists drafting. All credit decisions require qualified credit officer review and approval.