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General Underwriting Guideline for CCRF
This information is only provided to help screen "bad" deals. It is in no way a complete underwriting guideline.
We look at both the business (D&B reports) and the owner's credit history. All owners must give a personal guaranty.
We look beyond the credit score, but we'd like to see a minimum credit score of 550. If the owner has a very limited credit history, we would probably reject the deal regardless of the credit score. What is more important than reviewing the owner's credit history is the payment behavior of the owner in the past. The following is a partial list of points we look at:
- Amount of credit history in the credit report: The amount of history should commensurate with the age of the owner. As a rule of thumb, the more history, the better.
- Delinquencies: We understand that some lateness is inevitable as an owner of a small business. But numerous and serious delinquencies (over 60 days) will not be approved. No mortgage delinquencies, if applicable. No interest only/negative amortization mortgages.
- Number and Amount of collections.
- Number and Amount of Liens & Judgments: The business/owner must not have any material tax liens.
- Bankruptcy: A recent bankruptcy (within 5 - 10 years) will usually result in rejection.
- Total number of owners: The more, the better.
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