A Business Application in Underwriting

Resource Type Why Choose Clear Skies Capital®

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At Clear Skies Capital, we don’t just see you as another business owner—we see the potential for your business to thrive with the right financial support. Our application process is designed to make that happen, offering a seamless path from application to funding.

Here’s how it works:

After you’ve submitted your inquiry application through our website, you will receive an email from us within 10 minutes of your submission. If qualified, someone on our team will reach out to you for your initial consultation.

We DO NOT perform any Hard Credit Pulls upon you or your business when you submit a Credit Application.

1. Initial Consultation and Credit Application

Every great partnership starts with a conversation. We begin by getting to know your business and its unique needs through an initial phone call.

Example: A local restaurant owner wants to expand to a new location. During the consultation, we would get to know you and your business, the expansion and costs (permits, labor, equipment, materials, inventory, etc.).

After hearing from you, our Consultant will discuss our product offerings and address any questions you may have. If our products would be an appropriate fit for your needs/goals, we would request an Application Package which include the following:

  • Recent Bank Statements: We typically request four months of statements.
  • Clear Skies Capital Credit Application: The application can be emailed (scan with wet-signature), filled and submitted through our DocuSign, or faxed to 1-800-918-5560.

Note: Additional documents may be required, such as invoices for equipment finance requests.

2. Clear Skies Capital Application Review

Once we have your application, our underwriting team will review your package. This process can take about 1 business day and you should hear back from us with a pre-approval or decline. We carefully review all the documents you’ve provided to get an understanding of your business structure and financial position. This step is crucial because it helps us find the right solution that best fits your situation.

Here’s what we focus on:

  • Monthly Cash Activity: We use the bank activity to see deposits, expenses/payments, withdrawals, and/or liability payments. Frequency, amount, and consistency play a factor.
  • Daily Ledger Balance: We look at your average daily balance to get a sense of your cash position.
  • FICO Score: Your credit score assists in determining the best funding product for you.
  • Time in Business (TIB): A longer history often indicates stability and longevity, which can be a benefit to your application. TIB is based on Secretary of State filing records.
  • Overdrafts and Non-Sufficient Funds (NSFs): Overdrafts or NSFs, weigh into the equation for determining approval amount.

By understanding these aspects of your business, we can work on finding the best solution in an efficient and effective manner.

Your application package combined with our initial discussion (understanding you, your business and needs), assists us in finding the best solution for you. It allows us to be a strong advocate for you, so that we can work on getting you the best possible solution for you. Lowest cost and highest amount.

Instead of YOU spending time trying to find capital and talking to various lenders and/or brokers, leave that work to Clear Skies Capital.

3. Pre-Approval

Within about 1 business day, you will hear back from us. This may vary depending on the complexity of your business and capital requested. If you are not pre-approved you will let you know as soon as possible, and will provide next steps if you wish to re-submit.

If pre-approved:

  • Follow up call: Your consultant will reach out to you regarding your pre-approval(s) to discuss further details. Also, address any questions or concerns you may have at this time. Included on the call may be the following:
    • Preliminary terms and conditions
    • Preliminary amount
    • Any Additional/Potential stipulations
    • Other potential options

Up to this point, NO HARD CREDIT PULL HAS BEEN PERFORMED.

Next Steps: You would provide commitment to your Consultant, along with Drivers License and Voided check. This is needed during commitment to get agreements drafted.

4. Agreements and Final Review

Once we receive commitment from you, our team will proceed with obtaining an agreement. This will also trigger a final review of your application.

This process of will look as follows:

  • Agreement Released: The agreement will be sent to you for review and signature.
  • Additional Stipulations (if needed): There is a possibility that additional information or documents are required alongside the Agreement. Additional documents are on a case by case basis.
  • Final Review:
    • Confirming receipt of signed Agreement and Additional Stipulations (if needed)
    • Review previously and newly provided documents
    • Perform a Bank Verification
    • Verify ownership of the Business
    • On a case by case basis a hard credit pull may be performed here. If you have any questions, please ask your Consultant for further details.

In some cases, pre-approvals may be adjusted or revised based upon the final review.

Final review does not take long (less than 1-hour) after you’ve provided a signed Agreement and Additional Stipulations (if needed). Some circumstances may be longer than others. Once the review is complete, it’s time to celebrate. Just wait for your funds to come.

5. Disbursement

Here’s what happens next:

    • Funds Transfer: The funds will be transferred to your business account. This usually happens within one to two business days.
    • Funds Availability: Once the transfer is complete, the funds are immediately available for your use. Whether you’re expanding your business, purchasing equipment, or managing cash flow, you can now execute your plans with confidence.

6. Ongoing Support

Receiving your funds is just the beginning of our relationship. As your business grows and evolves, we’ll be here to support you. Many businesses don’t have the ability to have an in-house finance or credit team. That’s where Clear Skies Capital comes in.

Your Bank is usually the first source for Capital, however, that sometimes doesn’t work well for each situation. After your Bank, look to Clear Skies Capital we want to help. Whether or not you need Capital now or just have a simple question or inquiry – just reach out to us. We’re here to help!

When you’re seeking funding for your business, one of the most critical factors lenders consider is your cash flow. Cash flow is essentially the heartbeat of your business—it reflects how money moves in and out, influencing your ability to cover expenses, reinvest in growth, and, most importantly, repay loans. At Clear Skies Capital, we streamline this process by focusing on the most recent four months of your bank statements. This article will walk you through our cash flow analysis process, why it matters, and how it impacts your funding opportunities.

Analyzing Cashflow with a team

What Is Cash Flow?

Before diving into the specifics of our analysis, it’s essential to understand what cash flow is. Cash flow refers to the net amount of cash being transferred into and out of your business. Positive cash flow means that your business is bringing in more money than it’s spending, while negative cash flow indicates that your outgoings exceed your income.

Cash flow is crucial because it determines your ability to meet financial obligations—like paying your bills, purchasing inventory, and investing in new opportunities. Consistent positive cash flow is a strong indicator of a healthy business, whereas irregular or negative cash flow may signal underlying financial issues.

Why we focus on the last four months

At Clear Skies Capital, we review just the last four months of your bank statements when assessing your cash flow. Why only four months? This period is typically sufficient to provide an accurate snapshot of your business’s current financial health without overwhelming you with paperwork. Here’s why this approach works:

    1. Recent Activity Reflects Current Conditions: The last four months of bank statements offer a close-up view of your recent business activity. This helps us understand how your business is performing right now, rather than relying on outdated information.
    2. Efficiency and Ease: By focusing on a shorter time frame, we can expedite the underwriting process. This means quicker decisions and faster access to the funds you need.
    3. Spotting Trends: Four months is enough time to identify trends in your cash flow, whether positive or negative. This helps us make informed decisions about your eligibility for funding.

Step 1: Analyzing Your Deposits
The first step in our cash flow analysis is examining your deposits over the last four months. Deposits represent the inflow of money into your business, primarily from sales, but they can also include loans, grants, or other sources of income. Here’s what we look for:

  1. Consistency: Consistent deposits indicate steady revenue, which is a positive sign of your business’s ability to generate income regularly. This consistency is crucial for demonstrating that your business can maintain operations and repay loans without disruption.
  2. Growth or Decline: We assess whether your deposits are increasing, decreasing, or remaining stable. A growth in deposits suggests that your business is expanding and potentially taking on more customers or clients. On the other hand, a decline may indicate challenges that could affect your financial stability.
  3. Seasonal Fluctuations: Some businesses experience seasonal peaks and troughs. We take this into account by looking at the pattern of your deposits. If you operate in an industry with seasonal variations, it’s important to show that you can manage these fluctuations effectively.
  4. Unusual Spikes or Drops: Sudden, unexplained changes in your deposits might raise red flags. We look for consistency and predictability, as these are signs of a stable business.

Example 1 – If deposits for the last four months look like this

  • Month 1: $20,000
  • Month 2: $22,000
  • Month 3: $19,000
  • Month 4: $21,000

This pattern suggests consistent revenue with minor fluctuations, which is a positive indicator for lending purposes.

Example 2 – If deposits for the last four months look like this:

  • Month 1: $30,000
  • Month 2: $98,000
  • Month 3: $340,000
  • Month 4: $52,000

This pattern suggests in-consistent revenue with major fluctuations, which is a negative indicator for lending purposes.

Calculating your daily ledger

Step 2: Calculating Daily Ledger
Once we’ve analyzed your deposits, we move on to calculating your daily ledger. This involves examining your daily account activity to understand how much cash you have available each day and how this affects your business operations. Here’s why this matters:

  • Debt Servicing: One of the most critical aspects lenders focus on is your ability to service debt. A positive daily ledger is a strong indicator that you have the financial capacity to make loan repayments comfortably without compromising your business operations. Lenders want to ensure that you can meet your financial obligations consistently. By showing a positive and stable daily ledger, you demonstrate that your business is capable of handling additional financial responsibilities and making timely debt repayments.
  • Daily Ledger as a Health Indicator: The daily ledger provides insight into your business’s financial health by showing how much cash you typically have available each day. Consistent daily ledger balances are crucial for maintaining operations and managing expenses effectively.

Step 3: Assessing Account Stability

Account stability is another critical aspect of our cash flow analysis. We examine your average ledger balance over the four months to determine how steady your account balance is. Here’s what we look for:

  1. Average Ledger Balance: Your average ledger balance is the average amount of money in your account over the four-month period. A higher average balance is generally a good sign, indicating that you maintain a healthy buffer of cash in your account.
  2. Highs and Lows: We also consider the range of your account balance—the highest and lowest points over the four months. A wide range might suggest volatility, while a narrow range indicates stability.
  3. Consistency: Consistent account balances are a positive sign, showing that your business maintains enough cash to cover expenses regularly.
    For example, if your average ledger balance over the last four months was $15,000, with a high of $18,000 and a low of $12,000, this indicates a stable account with sufficient funds to manage day-to-day operations.

For example, if your average ledger balance over the last four months was $15,000, with a high of $18,000 and a low of $12,000, this indicates a stable account with sufficient funds to manage day-to-day operations.

Step 4: Monitoring Overdrafts and NSF Checks
Overdrafts and Non-Sufficient Funds (NSF) checks are important indicators of potential cash flow challenges. Here’s why we pay close attention to these:

  1. Overdrafts: Frequent overdrafts can signal that your business is regularly spending more money than it has available. This is a red flag, as it suggests that you may struggle to meet financial obligations, especially during lean periods.
  2. NSF Checks: NSF checks occur when there isn’t enough money in your account to cover a transaction. This can damage your business’s reputation and relationships with suppliers. High numbers of NSF checks indicate poor cash flow management and can affect your ability to secure funding.
  3. Implications for Lending: Both overdrafts and NSF checks are indicators of financial instability. Lenders may view them as signs that your business is at risk of defaulting on a loan, making it harder to secure favorable terms.

If, for example, you had two overdrafts and three NSF checks in the last four months, this would be a cause for concern. Addressing these issues before applying for funding is crucial for improving your chances of approval.

Understanding your financial health

Step 5: Understanding the Overall Financial Health
Finally, we compile all this information to assess your overall financial health. This holistic view allows us to make informed decisions about your eligibility for funding and determine the best financial solutions for your business. Here’s what we consider:

  1. Comprehensive Analysis: We don’t just look at one aspect of your finances; we consider everything from deposits and cash flow to account stability and overdrafts. This comprehensive analysis gives us a clear picture of your financial health.
  2. Tailored Funding Solutions: Based on our analysis, we can offer funding options that are specifically tailored to your business’s needs and situation. Whether you need a short-term loan to cover a cash flow gap or a long-term investment to fuel growth, we can match you with the right product.
  3. Mitigating Risks: Understanding your financial health also helps us identify potential risks. By addressing these risks proactively, we can help you strengthen your financial position and increase your chances of securing funding.

For instance, if our analysis shows that your cash flow is positive, but you’ve had a few recent overdrafts, we might recommend a line of credit to help smooth out cash flow fluctuations. This way, you have access to funds when you need them without risking overdrafts or NSF checks.
Conclusion: Why Cash Flow Analysis Matters
Understanding your cash flow is vital for making informed financial decisions. By reviewing just four months of bank statements, Clear Skies Capital can quickly assess your financial health and help you secure the right funding to support your business growth.

Whether you’re looking to expand, manage day-to-day operations, or invest in new opportunities, having a clear picture of your cash flow is the first step toward achieving your financial goals. If you have any questions or need help with your cash flow analysis, don’t hesitate to reach out. We’re here to help you succeed.

Introduction
When seeking business financing, two popular platforms often come to mind: Lendio and Fundera by NerdWallet. Both are recognized for providing access to various lending products, but how do they compare to Clear Skies Capital® (CSC)? This guide explores how CSC stands out by offering a personalized, hassle-free experience, unlike Lendio, where you may end up managing much of the process yourself.

Compare Clear Skies Capital vs. Lendio

How Clear Skies Capital® Works vs. Lendio

Clear Skies Capital (CSC)
At CSC, we act as your dedicated project manager in the world of business financing. Our experts handle every step of the process for you, from initial consultation to final approval, ensuring that you receive the best loan options tailored to your needs. We focus on building a personalized relationship with our clients, so you can focus on running your business while we do the heavy lifting.

Lendio
Lendio, on the other hand, operates more like a marketplace where you, as the business owner, take on the role of project manager. After submitting your application, you’re presented with various loan options from different lenders, but the responsibility to compare, evaluate, and follow up lies with you. While this offers more control, it also demands more of your time and effort.c

Personalized Service: Clear Skies Capital® vs. Lendio

Personalized service through Clear Skies Capital

Clear Skies Capital’s® Approach
At CSC, personalized service is at the core of what we do. We don’t just present you with options; we guide you through them, offering expert advice based on your unique business needs. We prioritize your convenience, ensuring that you’re not bogged down by endless paperwork, phone calls, or overwhelmed by too many choices.

Lendio’s Approach
Lendio provides a wide array of loan options, but the process can feel impersonal. You’re left to navigate the choices yourself, which can be daunting, especially if you’re not familiar with the intricacies of business financing. This approach can work for some, but it often leads to information overload and can make the process more stressful.

Construction Analogy: Who’s the Project Manager?

Imagine your business financing journey as a construction project. With CSC, you have a dedicated project manager (us) handling everything from start to finish. We communicate with the lenders, manage deadlines, and ensure that the project stays on track. You get the peace of mind knowing that professionals are managing the process.

With Lendio, however, you’re the project manager. You’re responsible for overseeing the process, coordinating with lenders, and ensuring that everything comes together. While this gives you more control, it also adds more to your plate.

Avoiding Spam Calls
One of the common frustrations with loan marketplaces like Lendio is the barrage of marketing and sales calls that can follow. At CSC, we value your privacy and ensure that your contact information isn’t shared with multiple lenders, reducing the risk of unwanted spam calls. We manage all communication on your behalf, so you can focus on what really matters—growing your business.

Why Choose Clear Skies Capital?

Quick funding options that won't effect your credit

  • Quick funding options that won’t affect your credit
  • Access to 75+ funders with multiple products to choose from
  • Financing up to $5 million in as few as 3 days
  • 5-star Google reviews from satisfied clients
  • Industry Experts: We know the ins and outs of business funding.
  • We’re Available: Always willing to help, even after work hours or on weekends.

Contact Us

Phone: 1 (800) 230-9822
Email: info@clearskiescapital.com
Schedule a call with us – https://calendar.app.google/MVAeQYMKaUyqkrSW7

Bank Verification – Explained

Bank Verification is a technology that allows you to connect your financial accounts and share their data with a requesting company. Examples include Plaid and DecisionLogic.

After you have signed contracts to secure funding, the next step is a “bank verification” with Plaid or DecisionLogic. If you are wondering what this means, you have come to the right place.

Bank Verification Explained

Use Cases for Bank Verification Service

Bank Verification has a variety of use cases including:

  • Account ownership verification
  • Deposit verification
  • Month-to-date cash flow reports
  • Ledger information
  • Confirming sufficient funds for future payments

Uses for bank verification

Are Bank Verification Services Safe?

When you link your bank account to the funder’s bank verification software, your information is 100% safe.
Here’s is how they keep it safe:

  • Secure Personnel: Background checks and confidentiality agreements for all employees and contractors, along with regular security training.
  • Secure Development: All development projects follow secure lifecycle principles and align with OWASP Top 10 recommendations.
  • Secure Testing: Regular third-party penetration testing and vulnerability scanning, with both static and dynamic software security testing.
  • Cloud Security: Customer data is isolated, encrypted at rest and in transit, and continuously monitored. Complies with SOC-2 standards.
  • Compliance: Regularly assessed and validated security practices, with a responsible disclosure policy for identifying and resolving vulnerabilities.

By implementing these measures, Plaid and Decision Logic ensures your financial data is securely managed and protected.

How a Bank Verification Service Works

Are Bank Verification Services Safe?

The Bank Verification software is integrated into eligible apps and doesn’t require you to create a separate account.

The connection process typically includes:

  1. Selecting or searching for your financial institution.
  2. Entering username and password information to authenticate financial accounts.
  3. Authenticating information for security purposes.
  4. Selecting the financial accounts you want to connect.
  5. Completing the connection to the desired app or service.

When you enter your username and password, DecisionLogic and Plaid set up a direct integration to your financial institution. Direct integrations mean that when you enter your bank credentials, Plaid never even sees them – credentials are sent directly to your bank. Your bank verifies it’s you and gives Plaid permission to access certain components of your account. Consumers are not charged for this service; the app requiring the financial data pays the fee.

Over 20,000 financial institutions use bank verification for millions of clients. However, not all accounts are eligible for connection, and some financial institutions may not yet support or allow third-party connections.

Examples of institutions using a Bank Verification Service

Use Cases For Bank Verification

  • Clear Skies Capital: Certain products and pre-approval types require our customers to link their business bank account through either Plaid or DecisionLogic during the funding process to validate and provide a comprehensive view of your business finances.
    • Certain funders can use a PDF of the month to date activity report instead of an electronic bank verification.
  • Venmo: For peer-to-peer payments and money transfers, Venmo requires you to verify a bank account through a Bank Verification Service by entering your online banking credentials.
  • Chime: By providing login credentials to an eligible external bank account, you can use Bank Verification Service to fund your Chime bank account.
  • Robinhood: Plaid allows Robinhood, a popular stock trading and investing app, to collect only the necessary banking information to safely transfer funds directly from your bank account when you invest.

    • Conclusion

    If a lender like Clear Skies Capital is requesting a Bank Verification, you don’t need to create a new account or pay for the service. Simply follow the prompted instructions in the app you’re using—such as entering your bank account credentials—and Bank Verification Service can link and share your financial information to get to the next step in the funding process.

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