Glossary

Underwriting

Underwriting is the process a lender uses to review a business and decide whether, and on what basis, to offer financing. It is where a lender weighs the structural picture, time in business, revenue, cash flow, industry, entity type, collateral, and supporting documents. Each lender underwrites to its own standards, which is why the same business can be a fit for some lenders and not others. A funding marketplace helps by matching a business’s profile to lenders whose underwriting fits it.