What happens at a funder’s credit committee meeting?

A funding application for a debt funder in particular, is likely to go through a couple of rounds of funding committee meetings to assess the proposal’s suitability for lending.

A credit committee consists of the upper management of a lending institution with the authority to approve loans that the local contact (often the Business Development specialist) does not have the authority to approve.

The types of loans that a credit committee reviews are generally of a large size and/or are risky.

The job of the credit committee is to ensure that the loan being reviewed meets regulatory standards, the firm’s lending policies, and fits the credit risk appetite of the firm.

Credit committees assess factors such as risk mitigants, the borrower’s credit score, past payment history, outstanding debts, and current liquidity.

The major credit report