Working Capital & Micro Funding Term Loan A loan with a fixed repayment schedule and term, typically 1-10 years.
Working Capital & Micro Funding Term-Out Provision Converting an outstanding LOC balance into a term loan with scheduled payments.
Working Capital & Micro Funding Weekly Repayment Short-term loan repayment structure with weekly ACH debits.
Underwriting & Metrics Non-Liquid Assets Assets not easily converted, like retirement accounts (counted at discount) and real estate.
Underwriting & Metrics Occupancy Type Classification of a borrower’s intent: owner-occupied, second home, or investment.
Underwriting & Metrics Pre-Underwriting Early review of a loan file before the property is identified.
Underwriting & Metrics Reserve Requirement Minimum months of PITI a borrower must have available after closing, often 2-6 months.
Underwriting & Metrics Stress Test Underwriting at a higher hypothetical rate to ensure the borrower can still afford payments.
Underwriting & Metrics Tri-Merge Report A combined credit report pulling data from Equifax, Experian, and TransUnion.
Underwriting & Metrics VOD Verification of Deposit — confirms account balances with a borrower’s bank.
Underwriting & Metrics VOE Verification of Employment — a document confirming a borrower’s job status and income.
Working Capital & Micro Funding Bridge Capital Short-term funding to bridge a gap between immediate needs and longer-term financing.
