There are a lot of fintech companies which are a wrapper of varying thickness over an underlying provider which was willing to do a smart bizdev deal but wasn't capable of shipping their own modern mobile/web experience.
Startups have two factors which make them difficult to underwrite in the traditional model: a) Their founders / people controlling this decision in the early days have a low tolerance for weeks of pushing paper around b) Their credit needs are justifiable but weird aligned ...
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... against the traditional expectations of most underwriting processes. Examples include "their growth rate would look suspicious at other businesses of their size", "they may not have financial sophistication matching the numbers at play in their business", and the big one:
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"A startup can be losing money regularly, in fact losing a lot of money regularly for years, but still be an *excellent* credit risk. Underwriting processes for small businesses are designed to detect this condition in companies and fire them out of a cannon."
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