How do you define hard stops for NSFs, negative days and restricted industries?

[cevrynt]

Curious how other funders write these. NSF and negative-day rules tend to cause more back-and-forth between underwriting and sales than anything else, usually because the rule was never written down precisely.

A few things that seem to make a rule hold up:

1. Name the window. "NSFs in the last 90 days" and "NSFs in the most recent full statement month" are different rules.

2. Say what counts. Is a returned ACH an NSF? Does an overdraft fee count the same as a returned item? Do reversed NSFs drop out?

3. Pick the action. Hard stop, soft flag for a person, or an exception with a named approver. Most rules belong in the second bucket.

4. Restricted industries need a source. Stated industry on the app vs what the deposits and web presence show often disagree, so decide which one the rule reads.

5. Version the rule. When the threshold changes, you want to know which version decided an older file....

[cevrynt]

How long does it take your team to get from a submission landing in the inbox to a memo you'd actually sign?


That's the file we built Cevrynt for. It's MCA underwriting software with a built-in CRM, and it takes one deal from intake to an evidence-linked memo:


1. Intake: the submission lands against one deal in the CRM, with its documents and status in one record

2. Documents: application, 3 to 6 months of statements, IDs, voided check and agreements sorted, key fields pulled out

3. Financials: true revenue vs transfers and loan proceeds, ADB, negative days and NSFs across the whole period, not month by month

4. Positions: every recurring MCA debit found, plus how much of the merchant's daily deposits is already committed before you add yours

5. Verification: the business, its owners and the application checked against each other (KYB)

6. Fraud: edited statements, mismatched...