What is my ‘Borrowing Profile’?
A borrowing profile is a term that we use here at Cast Capital to accurately underwrite your file. Remember, we don’t just look at the data supporting your file, like daily deposits and credit scores; we look at factors and behaviors that show future growth. Obviously we want to make sure that when you borrow money, you will pay it back, so analyzing risk is important. Here are the factors of the borrowing profile we look at to determine your approval.
Years in Business: For a cash advance we like to see 6 months in business, for other loan products a minimum of 1-2 years is required.
How?: Once you receive the money, how will it be used? Will the money be used to pay down other debt or will it be invested back into the company, so more revenue can be generated.
How Much?: A company generating $15,000 per month in revenue may have to reconsider their request for a $500,000 advance. This is not reasonable, for the borrower wouldn’t be able to afford paying this back.
When?: Do you need the money right away for a business plan or are you waiting for the right time?
Type of Business: Some businesses are riskier to lend to than others, other businesses like MLM and financial institutions are out of our funding profile.
Monthly Revenue: The money brought into a business on a monthly schedule. The amount of sales in any given month. This is calculated before understanding the monthly losses of the business. We are just asking for Gross Revenue.
Profit & Loss: Here we take into account the relative margins of your operation. If your business brings in $10,000, but has to payout $9,700 in bills, there are relatively no margins to work with.
Current Debts: What debts are you carrying currently? We want to know how much you are paying and on what schedule you are paying these debts.
Payback History: Have you borrowed in the past and successfully paid off a loan? A detailed credit report will also show this.
Criminal History: Hey, everyone makes mistakes, but we just want to make sure your a good person.