[puneetgandhi]

Dailyfunder members,

Would be extremely helpful if I can have your expert views on two questions below.

1. How many deals a typical junior / senior underwriter is able to process in a day/month?

2. What are the typical approval / pass rates for deals we see at junior / senior underwriter stage i.e. out of 100 deals junior/senior underwriters see, how many deals would be passed by them for funding?

Many thanks

[GoodCustomerService]

Depends on your underwriting structure. If your underwrite is more front loaded or back loaded. Are you trying to pump out more SOFT or PRE approvals, which leads to more potential declines after signed contracts, or more firm approvals which carries a higher funding rate after signed contracts but is costlier?

[blKC]

It really depends on the quality of the leads.

A strong deal takes longer to review than one that is instantly turned down.

A review can take anywhere between 30 seconds and 3-4 hours in my experience. Occasionally, a file will take longer if there are multiple corporate entities and 5-10 accounts to review.

[CreditGuy]

Define what an underwriter does in this hypothetical of yours...

[MCNetwork]

An underwriter who does a pre-approval (run credit, check bank and processing statements) takes 15-30 minutes to review the file. An underwriter who analyzes the completed package (signed contracts, articles of incorporation, tax returns, financials, additional bank statements, lease, etc.) and does a merchant interview (if applicable) takes 15-60 minutes per file depending on level of complexity. If a file is clean and the advance amount is low, an experienced underwriter can blow through this file in 10 minutes. Totally depends on the funder and their underwriting philosophy though. Some underwriters at other companies spend half a day analyzing a file...

[mcaguru]

I cant really go into the works of our salaried UW department, however we see several hundred files a day and from submission to final offer (they are hard offers) takes 3-4 hours on average. (we used to be next day NO longer our model). We stay away from the soft offer model, the reasons a deal would be killed after contract would be 1) Merchant getting another advance that does not allow him to handle our offer 2) Merchant account goes negative between offer and the funding 3) Fails a Merchant interview. (rare but when funding the amount we do it happens).

Feel free to Signup / ISO Agreement.
Bizdev@cresthillcapital.com

[J.Celifarco]

This question is impossible to answer. Depending on the underwriting criteria given by the bank the numbers would vary from case to case

[ADiamond]

Dailyfunder members,

Would be extremely helpful if I can have your expert views on two questions below.

1. How many deals a typical junior / senior underwriter is able to process in a day/month?

2. What are the typical approval / pass rates for deals we see at junior / senior underwriter stage i.e. out of 100 deals junior/senior underwriters see, how many deals would be passed by them for funding?

Many thanks

every case is situational - depends if soft approvals were given, depends how many stips need to be requested and verified, depends on the availability of the merchant, depends on the overall duties of the UW - i've heard that companies like FORA for example, they will have 3-4 UW's work on one file - one person pulls credit, one does bank verification, etc - that is a horrible set up. other companies like the higher risk shops an UW may go through 7-10 deals on a good day and a low percentage of that funds in the end.

[puneetgandhi]

Thanks MCNetwork/mcaguru/ADiamond. Very helpful color.

An underwriter who does a pre-approval (run credit, check bank and processing statements) takes 15-30 minutes to review the file. An underwriter who analyzes the completed package (signed contracts, articles of incorporation, tax returns, financials, additional bank statements, lease, etc.) and does a merchant interview (if applicable) takes 15-60 minutes per file depending on level of complexity. If a file is clean and the advance amount is low, an experienced underwriter can blow through this file in 10 minutes. Totally depends on the funder and their underwriting philosophy though. Some underwriters at other companies spend half a day analyzing a file...

I cant really go into the works of our salaried UW department, however we see several hundred files a day and from submission to final offer (they are hard offers) takes 3-4 hours on average. (we used to be next day NO longer our model). We stay away from the soft offer model, the reasons a deal would be killed after contract would be 1) Merchant getting another advance that does not allow him to handle our offer 2) Merchant account goes negative between offer and the funding 3) Fails a Merchant interview. (rare but when funding the amount we do it happens).

Feel free to Signup / ISO Agreement.
Bizdev@cresthillcapital.com

every case is situational - depends if soft approvals were given, depends how many stips need to be requested and verified, depends on the availability of the merchant, depends on the overall duties of the UW - i've heard that companies like FORA for example, they will have 3-4 UW's work on one file - one person pulls credit, one does bank verification, etc - that is a horrible set up. other companies like the higher risk shops an UW may go through 7-10 deals on a good day and a low percentage of that funds in the end.

[Chambo]

An underwriter who does a pre-approval (run credit, check bank and processing statements) takes 15-30 minutes to review the file. An underwriter who analyzes the completed package (signed contracts, articles of incorporation, tax returns, financials, additional bank statements, lease, etc.) and does a merchant interview (if applicable) takes 15-60 minutes per file depending on level of complexity. If a file is clean and the advance amount is low, an experienced underwriter can blow through this file in 10 minutes. Totally depends on the funder and their underwriting philosophy though. Some underwriters at other companies spend half a day analyzing a file...

I always figured as much....yet it takes some of these folks 2-3 days to get back to you. Go figure

[cdg]

We are aware of shops that run the gamut of running through anywhere from 5-50 files per day. There are several factors that need to be taken into consideration when parsing out the ‘uw time’ allocated to each file. We work with several different lenders and they all vary. Some prefer to have a full underwrite when obtaining all necessary docs required whereas others just need a pre-approval based on minimal docs. A linear relationship exists between the lender and their adopted risk model. There are undoubtedly more files processed by an underwriter if less stips (based on a dollar funded) are required and/or the lender is taking a 2nd position.

In reference to approval/pass rates, this is subjective to the experience of the underwriter, risk model of the lender, quality of leads, etc. The approval of files isn’t necessarily a question that should be positioned towards an underwriter because of the factors involved and multiple variables. The role of the underwriter is to assess risk and protect your investment as a lender where they are not functioning as a sales person to approve as many deals as possible, but rather reviewing files accurately.

Contact us at team@centraldiligencegroup.com if you need an underwriting solution to fit your needs.

[puneetgandhi]

Thanks cdg for the color. Understood on approval/pass rates. Makes sense

We are aware of shops that run the gamut of running through anywhere from 5-50 files per day. There are several factors that need to be taken into consideration when parsing out the ‘uw time’ allocated to each file. We work with several different lenders and they all vary. Some prefer to have a full underwrite when obtaining all necessary docs required whereas others just need a pre-approval based on minimal docs. A linear relationship exists between the lender and their adopted risk model. There are undoubtedly more files processed by an underwriter if less stips (based on a dollar funded) are required and/or the lender is taking a 2nd position.

In reference to approval/pass rates, this is subjective to the experience of the underwriter, risk model of the lender, quality of leads, etc. The approval of files isn’t necessarily a question that should be positioned towards an underwriter because of the factors involved and multiple variables. The role of the underwriter is to assess risk and protect your investment as a lender where they are not functioning as a sales person to approve as many deals as possible, but rather reviewing files accurately.

Contact us at team@centraldiligencegroup.com if you need an underwriting solution to fit your needs.