Projected Cashflow Overstatement occurs when future cash flows are estimated higher than realistic operating performance supports. In underwriting, it provides business and banking context that supports facility structuring, risk assessment and credit-decision documentation. The trend is usually more important than one isolated number, because MSME financials can be affected by seasonality, accounting treatment and one-off events. For example, a business may report sales growth but still face stress if collections slow and vendor payments become due earlier. It matters because the same borrower can look different depending on banking arrangement, transaction behaviour, documentation quality and business context. The common caution is to document the source, date, assumptions and credit impact so the term does not become a vague narrative label.