1) Intake: Confirm the File is Complete

Before reviewing risk, confirm you actually have what you need. Incomplete files create rushed approvals and inconsistent standards across underwriters.

• Application + owner details (entity, address, SSN/EIN where applicable)
• Government ID + proof of business (license / website / storefront verification)
• Bank statements (recommended: last 3–6 months, full PDFs, no missing pages)
• Processing statements (if applicable) + current payment obligations
• Voided check / ACH authorization details

2) Business & Owner Verification

You’re not only underwriting cash flow — you’re underwriting identity and legitimacy. Standardize your verification so you don’t rely on memory or “vibes.”

• Business is active and matches application (name, address, industry)
• Owner identity matches all documents (no mismatched names/addresses)
• Obvious red flags: recently created entities, unrelated industries, unverifiable presence
• Any compliance/KYC checks your operation requires (documented)

3) Bank Statement Review (The Core)

Use the same review rhythm every time. You’re looking for stability, coverage, and behavioral signals — not just average deposits.

• Average daily balance trend (improving, flat, or deteriorating)
• Deposit consistency (weekly patterns vs random volatility)
• NSF/overdraft frequency + timing (isolated vs repeating)
• Negative days + end-of-month stress patterns
• Large withdrawals/transfers (owners draws, cash pulls, unknown payees)
• Existing daily/weekly debits (stack indicators, current MCA obligations)

4) Cash-Flow Coverage & Offer Fit

A good approval is not just “approvable” — it’s collectable without constant exceptions. Underwriting should match the offer to the merchant’s cash-flow reality.

• Does the payment schedule align with deposit cadence (daily vs weekly)?
• Stress-test: would 1–2 weak weeks create immediate NSFs?
• Consider seasonality (restaurants, construction, retail cycles)
• Confirm exposure isn’t concentrated in a single customer/source

5) Decision Notes (Make Them Investor-Ready)

Clean decision notes matter later: audits, lender diligence, disputes, and performance reviews. Notes should explain the “why,” not just the result.

• Key strengths (deposits stable, balances healthy, strong coverage)
• Key risks (NSFs, volatility, stacking signals) + how mitigated
• Conditions (lower payment, shorter term, additional docs, stipulations)
• Final decision + rationale in 3–5 bullet points

6) Post-Approval Hand-off (Don’t Skip This)

A strong operation prevents downstream chaos by making underwriting-to-funding clean. Build a simple hand-off routine so every funded deal is set up the same way.

• Confirm funding instructions + verified bank details
• Set servicing expectations (first payment date, contact, escalation rules)
• Tag the deal for reporting (tier, source, risk notes, special handling)
• Record any “watch list” flags for early monitoring

Final Thoughts

The goal isn’t to make underwriting slower — it’s to make it repeatable. When your team scales past a few underwriters, a checklist is how you protect standards, train faster, and create clean data for portfolio performance analysis.