Glossary · Underwriting
Paper grade
Paper grade is shorthand for deal quality, A through D. A paper has strong revenue, credit and statements and gets the lowest factors; D paper is the riskiest.
Also called A paper, B paper, C paper, D paper, credit tier
A-paper files usually show solid true revenue, few or no positions, clean statements and good owner credit, and price at the low end of the factor range (around 1.10 to 1.25). D paper (heavily stacked, thin balances, frequent NSFs) prices near the top (around 1.40 to 1.55) if it funds at all.
Funders also describe themselves by the paper they buy. Knowing which funders take which grade is the core of lender matching: submitting C paper to an A-paper funder is a wasted submission.
Track it on every deal
Statements, offers, positions and commissions with the math worked out, in one CRM for lending companies.
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- GlossaryDecline reasonA decline reason is why a funder turned a deal down: revenue too low, too many positions, NSFs, restricted industry or state, credit, missing stips and similar.Read