Underwriters assess the overall creditworthiness of an applicant. While consumer credit underwriting can be relatively straightforward, understanding small business creditworthiness is often anything but. The primary objectives of the underwriting process are to evaluate the overall credit profile, identify potential risk areas, and ensure the business has the cash flow to repay the loan. We do this by analyzing the supporting documents included with the application — evaluating things like cash flow, strength of the balance sheet, and the personal credit profile of the loan’s guarantors. When reviewing an application, we try to determine, among other things:
However, unlike a traditional lender, we’re not necessarily hung up on any one of those individual questions. While we believe credit history is an important gauge of financial and operational stability, so are additional factors — like the business owner’s passion about the market opportunity and the business’ online customer reviews. Our philosophy is that if you have a credit “box” that’s sharply defined and rigidly enforced, you miss out on good borrowers. Our goal is to really understand the nuances of each of the businesses we lend to, and how we can help them succeed.
At Funding Circle, our underwriters are a team of highly trained credit professionals who bring years of industry experience in small business loan underwriting. We assign just one underwriter per application, meaning it won’t be passed back and forth among a corporate committee, and you have just one person focused on evaluating your business. This means we’re 100% focused on your application, and you don’t need to worry about something falling between the cracks.
When we review an application, we use our wealth of experience to discern important aspects of your business’ cash flow, stability, and longevity. Most importantly, our underwriters have a sincere passion for seeing small businesses succeed — some even have a family history of business ownership, so we are actively looking for reasons to approve your application.
Our application and underwriting process costs nothing. If you’re curious about what you may qualify for, apply today, obligation-free!
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.