2017 November

November 30, 2017

The loan underwriting is a process undertaken in order to analyze the data provided by the loan applicants. In addition, the credit score is being reviewed prior to the assessment – whether a certain applicant meets the minimum criteria for a loan or not. As a part of the loan underwriting process, all of the data is analyzed, verified and then summarized so the lenders can figure out the status of the applicant.

So, here are the three things that underwriters should look for  when applying for a loan:

Get to Know the Applicant’s Personal Status

It is important to understand the borrower’s personal information before giving them a chance to acquire the loan approval. By knowing who they are and what they do, you can definitely assess the right move for them.

The underwriters will thoroughly review the applicants, including their credit score, monthly gross revenue, and other related matters. Other key characteristics to be considered will be the applicant’s age, residential status, employment status, loan purpose, loan amount, and the numbers of earners in the house.

All of these will help the underwriters analyze and summarize the personal data of the borrower. This will help both parties make the process fast and easy with the proper cooperation.

Get to Know the Applicant’s Bank Statements

The underwriters need to review the applicant’s bank statements. The underwriters need to ask for recent bank statement copies of the borrower at the time of the underwriting process. This will help the underwriters understand how the borrowers manage their money. Also, the bank statements should not be overlooked, as it confirms the following data:

  • Applicant’s real full name and address
  • Applicant’s salary credits (to see if they are on a regular amount and on a regular basis)
  • History of the general transactions (whether they are on a regular payment made to the credit agreement)
  • To see if there are any unpaid or a reserved transaction
  • Use of an unauthorized credit limit

All of this data on the applicant’s bank statements has the impact on the loan, so this should be taken into account, as well.

Applicant Credit Search

The underwriters must use an electronic identification process by effectively connecting with the reference agencies so the identities of the borrowers will be identified. The underwriters need to compare the key credit score and information of the borrowers such as credit cards, mortgage, loans, as well as bank statement status towards the disclosed data in the application.

Aside from these three essential aspects, the lending company should also take a look at the potential financial frauds to avoid issues along the way.

November 22, 2017

Most people believe that money is the most essential resource. However, that may not always be the case. The most important asset is time. Once it is gone, you can never get it back. You cannot go back into the past and correct your mistakes.

For a lending institution, time in business plays a vital role in the success and growth of the startup or company. There are many benefits of having longer time in business, here are some of them.


Running a lending agency is not easy. Despite your professional and personal competencies, you will find it hard to deal with all your duties. If you find yourself out of focus, you can lose out on good opportunities in an instant.

To get the most out of your business, effective time management is essential. Prioritize the largest and most urgent tasks at the top of your list. Keeping that thought in mind, you will surely improve your service and acquire potential clients in no time.

More clients, more revenue

Not all entrepreneurs today have enough budget to run their businesses. This is why they use the services of a reliable lending institution. With this being said, non-traditional financial providers have a high demand from a broad range of people, including small, medium, or large businesses.

Those who are in need of capital will be careful before making any decision. Even though you may be a trusted company, you could encounter resistances and will need to convince them to take advantage of your services. As long as you provide fast approval, reliable interest rates and minimum requirements from the applicants, you will have many good clients. Aside from that, you can expect more revenues within a short span of time.

Reduce bad credit

In the lending industry, it is difficult to find trustworthy clients. So, to avoid losses and difficulties, they consider credit history. When an applicant was not able to pay his credit in the past, his business loan would less likely be approved. By managing on-time payments, this issue can be avoided, which will benefit the business owners and lending company as well.

Fast process

Every individual who engages in this field dreams to provide an immediate process. Once you are surrounded with by a team of experts and state-of-the-art resources, you can make it come to life. A lot of small business owners would prefer working with you if your process is fast.

Time is imperative without a doubt. Though you can get swamped with applications, inquiries and other problems, try to manage everything smartly. Finish the most significant tasks first before moving on to other less urgent matters. Lead your company well and hire productive and reliable employees.

November 13, 2017

Whatever the size of your business, a well-managed budget plays an essential role in your success. Nevertheless, being a small business owner, you might be pressured to manage your budget correctly. You will also encounter a difficulty with back-up funds. For you to make a profit and balance other expenditures, you have to create a strong, concrete and effective budgeting plan ahead of time.

Money or finances is a complicated topic to deal with. But lack of efficient financial planning could cause your startup to fail in an instant. By spending your time to focus on your budget, you will not use your precious time on expenses. You will heed on your business instead. So, how are you going to manage your principal effectively?

Budget by department

Even though your startup might be small and may not have many departments, it is imperative to manage your budget just like large corporations do. You can take your past financial plan as your guideline and base your future budget on it. That way, you can determine where your leftover budget came from, which departments met their goals, etc.

You can also hire a professional who specializes in this process for a more effective and efficient departmental budget.

Always plan ahead

Looking ahead at the calendar of your business is useful. You can start by asking yourself what your future expenses will be. It is also significant to focus on the larger aspects of your business such as new staff recruitment and office renovation.

To utilize your money properly, plan out your expenses and consult with your team, so you don’t find yourself at a point where you have underestimated your budget.

Be ready to experience the worst scenarios

Unexpected expenses can be your worst nightmare. You have to be prepared to experience such problems. You should always have an emergency fund in case you fall into a financial dilemma.

In case you do not have a backup budget, do not worry as there are companies that provide small business loans. OneBox Funding can help you find the right loan for your business.

Learn how to prioritize

If your business has been  making high revenues for the past few months, make sure to prioritize your expenses so you don’t find your self in a loss. It will help you reduce unnecessary costs and balance your financials.

When your budget is not enough to meet your goals, why not consider OneBox Funding. As long as you can pay your debt, you have high chances for a loan approval with fair interest rates.