Six errors that fail a certification whatever the score
A high score cannot offset a mistake that would hurt a real portfolio. Here is why the six critical errors exist and what they are.
A score is an average. A portfolio does not forgive the one bad call inside an otherwise decent memo. That is why Crediteris marks six answers as critical errors: any one of them fails a certification whatever the total score, because each is a mistake that would hurt a real lender.
- Recommending approval with coverage below 1.0× on the stated basis, without an identified and credible mitigant.
- Including a non-recurring item in cash flow available for debt service when removing it changes the conclusion.
- Relying on security that cannot be enforced as described — a hypothec with no stated sum, or a purchase-money security interest not registered in time.
- Ignoring a Crown priority claim present in the file: unremitted source deductions or GST/HST.
- Making a recommendation that contradicts the analysis, without explanation.
- Missing a related-party or shareholder claim that ranks ahead of the lender or drains its cash — retractable shares, shareholder loans, an earn-out or a vendor take-back.
The feedback names the error and why it matters in practice, and a critical error always triggers a remediation activity before the next attempt. Certification memos are scored by trained human assessors, so the judgment behind a borderline call is read by a person, not inferred from a pattern.
How assessment, retakes and remediation work is on the product page.