CMA Report stands for Credit Monitoring Arrangement Report, a report prepared for banks. Businesses are growing rapidly, and banks contribute sizably to this growth. Not everyone has ancestral money, and not every business can fund its expansion through retained earnings. A business needs funding, either by way of equity or debt, at one point or another. To finance a business via creating a debt, getting a loan sanctioned from a bank is a good option if the interest rates are lower than in any other option. CMA Report is must for getting the Cash Credit (CC)/Overdraft (OD) from the banks.
 
Banks prefer to give loans to those clients who have good financial standing. And before sanctioning a loan, they want to assess the financial health of their prospective borrowers. This is when the need for this comprehensive report arises. Banks demand this report to judge the repayment capacity of its borrower. This report is also required to apply for an increase in the current credit limit. The data used in this report is based majorly on the client's financial statements.