What is a Line Sheet?
A line sheet is a type of financial document that can be used in several different applications. Most commonly, the document has to do with the work of bank examiners in terms of evaluating loans issued by a specific institution. In this particular application, the line sheet is often known as a loan line sheet or guide. A similar application involves the creation of a working schedule that a business can used to evaluate reinsurance options associated with various assets with allowances for different classes or levels of risk. In both applications, the idea of using a line sheet is to make sure standards and regulations relevant to the process are applied to the task and that any internal policies and procedures that relate to the activity are likewise observed.
With bank examiners, the use of the loan line sheet helps to keep the process of reviewing loans issued by a given financial institution organized and on track. The process may be used for evaluating personal as well as commercial loans issued by the institution. With either loan type, the sheet detail will include the basic information regarding the loan under scrutiny, including the original amount of the loan, an overview of the terms and conditions, the current balance due, and the payment history up to the point of the review. As part of the evaluation process, the examiner will add any notes he or she feels is relevant to the assessment.
When used as a business tool, a line sheet can have to do with the establishment of a schedule that focuses on assets or lines owned by the company and the various levels of risk involved with those assets. The working document serves the purpose of making it easier to determine insurance and reinsurance options with those assets, based on that risk. In this application, the line sheet is updated to include any shifts in value or risk that are connected with the assets, making it possible for the company to easily track the current worth of those assets to the company.
A third and less common example of a line sheet is found in the textile and garment industries. Here, the reference to a line has to do with a product line offered by the business. Typically, the line sheet will include information regarding the colors, sizes associated with the line, as well as internal data like a style and identification number. Other information such as lot sizes, merge types, and even production quotas for the lot may be included. Depending on the application, a sample or swatch of the fabric or fiber associated with the sheet may be attached.
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