Guides on bank statement analysis, cash flow underwriting, SBA rules and credit risk for commercial lenders.
SBA 7(a) underwriting guidelines under SOP 50 10 8: the 1.15x and 1.10x DSCR floors, credit, equity injection, and the cash-flow analysis required.
Read articleHow construction loans are underwritten: loan-to-cost caps of 65 to 75%, contingency and interest reserve sizing, and the draw and inspection process.
Read articleHow factors underwrite staffing agencies: client credit over agency credit, 80 to 95% advances, payroll tax checks and timesheet verification.
Read articleSBA 7(a) equity injection requirements under SOP 50 10 8: 10% of total project costs, the seller note rules, and how lenders verify the funds.
Read articleInvoice factoring approves on your customers' credit and funds in a day or two. A bank line of credit is cheaper but harder to qualify for. Compared.
Read articleGross deposits overstate revenue because transfers, owner injections and loan proceeds all land as credits. How underwriters net them out and catch it.
Read articleA concentration limit caps how much of a factoring facility rests on one debtor. Most factors cap eligibility at 15 to 30 percent per customer.
Read articleA freight factor underwrites the carrier and the brokers who pay. Authority, insurance, UCC liens, notice of assignment and debtor credit limits.
Read articleCDFIs lend where the credit score says no. The method: rebuild cash flow from bank statements, cross-check the tax return, and read account health.
Read articleAn MCA takes a fixed daily debit priced as a factor rate. Revenue based financing takes a percentage of monthly revenue, so the payment flexes.
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