Will I Get Funded? Demystifying the Loan Underwriting Process | Coffee Chats with Caroline Nelson

What exactly happens in underwriting? Here’s the truth behind the "black box."If you’ve ever wondered if you will get funded for a loan, in this episode, Caroline and Brandi from CIC share what an underwriter really looks for - and how you can get approved faster.Why are loans underwritten? It’s all about assessing risk. Lenders use a variety of means to understand if your business can handle taking on the debt - using ratios like DSCR (debt service coverage ratio), current assets, cash flow, credit history, additional income, and more. For lenders like CIC, we want to make sure that the amount of money that your business takes on will help you grow and is feasible to be repaid, and not going to be overwhelming and put you in a worse financial place.It’s as much about the numbers as it is about the story behind them. At CIC, our team looks at a potential borrower's character and builds a relationship with them, which helps inform the underwriting process.If the underwriting process ever felt mysterious or scary, we’re here to help. We believe transparency is everything, and knowing how it works and how to be better prepared can actually make the process less intimidating.At its core, underwriting is about supporting your growth. We care about helping you understand your financial standing and what it takes to move forward.Learn how to track your finances here: https://youtu.be/b9XXeVhNAII?si=9a1Jc0CsRdWdMgveCheck out our loan calculator here: https://cictucson.org/businesses-that-prosperAbout the Host:Caroline Nelson is the Chief Operating Officer and Director of Lending at Community Investment Corporation (CIC), a Tucson-based 501(c)(3) nonprofit that specializes in small business lending, crowdfunding, and alternative financing in Southern Arizona, including Cochise, Graham, Greenlee, Pima, Pinal, Santa Cruz, and Yuma Counties. Caroline is joined by Brandi Szymanzi, CIC's Rural Lending Manager, for this discussion.Have a question about small business finance, a theme, or a quest expert you'd love us to have on the show? Submit it here! https://cictucson.org/coffee-with-caroline-submission-formhttps://cictucson.org#BusinessFinance #LoanApprovalTips #Underwriting101 #FinancialFreedom #SmallBizGrowth