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Supervest Funder Due Diligence

April 11, 2023

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Overview is a platform that connects accredited investors with small/medium-sized businesses (SMBs) in need of financing to cover short-term working capital needs. Investors who invest through the platform become members of a syndicate that funds the company, and each investor owns a “participation share” of the funding agreement.

Funder Onboarding and Evaluation Process

When onboarding new Funders to the Supervest platform, a course of company Due Diligence – underwriting history, process overview, and portfolio analyses – are undertaken to ensure prospective Funders meet the operating standards and performance thresholds maintained at Supervest.

Standard Requirements for Prospective Funders:

(Based on time in business and the size of the Funder’s portfolio, the detail and timeframe of these requests may vary)

  • Funder Underwriting and Collections Policies and Procedures
  • Funder Pricing Matrix or Product Suite
  • Funding Data Tape or Static Pool for the last 3 years and YTD

Funded Contract Data Requested:

  • Date Funded
  • Funded Amount
  • Factor Rate
  • Balance
  • Term
  • Position
  • Remit %
  • Butyrate and/or commission
  • Status (Repayment, Paid in Full, Collection, et al)

Company COVID Impacts:

  • Changes in Underwriting Policies:
    • Minimum applicant Credit score
    • Maximum negative banking days allowed
    • Maximum remit %
    • Targeted industries and regions
    • Restricted industries and regions
  • Portfolios Changes:
    • % or unit changes of modification requests from customers within the portfolio
    • Changes in company policy for modification requirements post COVID

Received data and information is handled by an independent portfolio analyst who compiles a Due Diligence recommendation to enter into a Participation Agreement with a prospective Funder based on the following:

  • Overall portfolio performance
  • Historical performance trends and delinquency rates
  • Pricing and Profitability
  • Strength and flexibility of underwriting processes
  • Funder’s in-house collection capabilities
  • Funder’s in-house investment in the Funded portfolio

Based on findings during the Funder Due Diligence evaluation, recommendations may include limiting Supervest from investing in certain submissions based on the following criteria, if portions of funded deals in these categories have proven to have a negative performance impact on the Funder’s portfolio:

  • FICO Score
  • Time in business
  • Funding Amount
  • Industry
  • Region
  • Funded Position
  • Remit %
  • Commission
  • Factor Rate

Once a new Funder is approved for onboarding, in most cases, Supervest will limit individual deal investment to 10-25% per submission, for the first 30 days. This limit is extended or removed if submission quality and early performance read meet the expected standards.

Quarterly and often monthly reviews are conducted for all Funders for updated portfolio performance and submission quality. Supervest reserves the right to adjust submission criteria or limit investment based on these reviews. Supervest also will request updated policies and procedures from Funders, especially in cases where overall performance has dropped, or consistent change is observed in the type and overall pricing structure of submissions.

As the operational capabilities and the sophistication of individual Funders vary, so does the quality and detail of the requested information. For Supervest, maintaining an open line of communication and full transparency with our Lending partners helps ensure all parties meet the best standards of practice and performance within the working relationship.


Supervest employs a well-established, nationally known collection recovery company to provide personalized collections services to Syndicate Partners and Funders by monitoring all of the MCAs on the platform for missed payments using direct access and reporting through Supervest’s platform. Once a missed payment has been identified, the recovery company will initiate communications with a Funder by phone and/or email in order to obtain payment information and status updates. The recovery company will continue to follow up with a Funder on MCAs in which delinquency, breach, or default has occurred to ensure a Funder is actively seeking a remedy. As changes in status are identified, status codes and deal attributes are updated on the platform for full visibility to Syndicate Partners.

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