PartnersLenders
BUSINESS FINANCING GLOSSARY

Underwriting

The lender’s process of assessing risk — reviewing revenue, credit, time in business, and bank health — to decide whether and how to fund you.

Go deeperThe 5 Cs of credit ▸

Related terms

Average Monthly Revenue→Your total revenue divided across the months a lender reviews (usually 3–6 months of bank statements). Revenue-based and MCA underwriting leans heavily on this.Chargeback→A forced reversal of a card payment initiated by the customer’s bank. High chargeback rates can hurt MCA and card-based underwriting.K-1 (Schedule K-1)→A tax form reporting a partner’s or shareholder’s share of a pass-through entity’s income. Often requested for owners in SBA underwriting.

← All 138 glossary terms