Updated: Dec 29, 2017
So you’ve filled out the application and sent in your supporting documents — now what happens? Your application will make its way through our underwriting process, where our credit team evaluates your business and your ability to repay the loan.
During this process, you will be assigned a personal underwriter — the person who looks closely at the legitimacy, stability, and longevity of your business and decides whether to approve your loan request.
There are a number of factors we take into consideration — everything from your cash flow to online customer reviews. We believe in being very thorough and considering a variety of aspects (unlike some other lenders, who just want to give you the money and make you pay it back at a ridiculous rate). This isn’t like a background check, though: we’re not going to make reference calls to your friends and family.
It’s important to note that this isn’t all just done by one person making decisions willy-nilly, nor is it just a computer algorithm that spits out a one-and-done answer. While all transactions are reviewed and finalized by our expert underwriting team, we also leverage technology to assist in our overall credit assessment. We think of this as a best-of-both-worlds scenario: you get the benefit of an individual’s deep lending expertise and eye for ways we could make an offer work, and a whip-smart credit model that knows the right calculations to make.
Every once in awhile, the underwriter has an additional question or two about your business — if this happens, we will will reach out to you directly and relay the questions. This isn’t necessarily a cause for concern, so don’t panic! Oftentimes, there’s just something the underwriter needs to know that isn’t clear in your initial application.
When we arrive at a decision, you’ll receive a phone call from your account manager or an email. We make every effort to keep you in the loop about where your application is in the process — if you ever have any questions while awaiting a decision, you can reach out to your account manager directly.
Chris Capecelatro is Funding Circle's U.S. director of underwriting. Previously, he managed credit risk for a global casualty insurer in addition to working in commercial lending for a local bank.