Underwriting Standards for Commercial Receivables
Liquidity Before Revenue
Our review begins with the average daily balance in the business’s operating account. Deposits show how much cash moves through a business; average daily balance helps show the liquidity it typically maintains.
A business can post strong deposits and still spend more than it collects. Where operating liquidity cannot support contracted remittances, we do not proceed.
Existing obligations to other funders do not automatically disqualify a business. We assess whether verified cash flow and operating liquidity can support all contracted remittances. Where they cannot, we decline.
Acquisition Criteria
We focus on evidence of payment capacity, not projections alone.
Every opportunity we review has already cleared the originating funder’s initial underwriting. UBC then conducts its own independent review and declines the majority of opportunities considered.
Initial approval is the starting point, not the final decision.
Proven Payment Behavior
We look for businesses that have completed a prior funding as contracted. A renewal by the same funder is among the strongest signals available to us because it reflects observed rather than estimated performance. We weight it accordingly.
Cash-Flow Verification
We conduct detailed bank-statement reviews for negative-balance days, deposit activity inconsistent with the business’s established pattern, and items that do not reconcile.
Shorter Exposure
We favor an estimated remittance period of six months or less and consider eight- or nine-month periods only when the opportunity is otherwise strong. Duration is a risk control, not a preference: the sooner capital returns, the shorter UBC’s exposure to any one business. A fixed ceiling on position size serves the same purpose.
Grounds for Decline
We decline opportunities involving insufficient operating history, sustained cash deficits, inadequate retained liquidity, or economics that do not compensate for the risk assumed. We do not relax our criteria simply to deploy capital.
Documentation, Collateral, and Servicing
UBC acquires its position from the originating funder, which continues to service the receivable and remains the secured party of record.
As part of its review, UBC evaluates the applicable transaction documentation, the funder’s collateral and filing framework, and the servicing arrangements supporting the receivable.
For institutional buyers: UBC also provides sourcing and administrative coordination for commercial receivables. Explore Institutional Sourcing.