Settle offers financing in the form of Extended Payment Terms to qualified businesses. The underwriting process occurs on a case-by-case basis but in general there are some minimum criteria we look for when qualifying a business:
Roughly 1 year’s worth of operating history
At least $300,000 USD in trailing twelve months’ revenue (TTM)
Demonstration of revenue growth
The business is domiciled in the United States
The business is solvent
In order to ensure your business meets this criteria, we carefully review your submitted financial documentation to assess your eligibility. These documents help us evaluate business solvency and growth potential.
An active connection to your accounting software (so that we may review your Profit and Loss Statement and Balance Sheet)
If you previously applied for credit and were not approved, we are open to re-evaluating so long as the financial health of your business has improved since last review. Our underwriting team reviews several factors during the evaluation process, including:
Consistent growth in sales revenue.
Maintenance of a sufficient cash runway (typically at least six months).
Ability to cover current liabilities with cash and AR balances.
Positive asset-to-liability ratio, signifying greater assets compared to liabilities.
Limited exposure to existing lenders.
As underwriting progresses, additional documentation might be required, such as:
Updated financial statements covering periods as recent as 60 days ago.
Financial documents for the latest closed quarter or month, as applicable. Staying in contact with your underwriting representative ensures that you can quickly respond to any updates or additional requests.
If your business doesn’t meet one of the thresholds listed above but you think you may qualify for an exception, please feel free to get in touch with us by scheduling a call with our team or reaching out to your Settle representative.