A business banking underwriter usually assists the commercial lending process. The underwriter will prepare financial statements related to the financial health of the potential borrower. This should include years of historical financial information, in order to show comparisons. Research is involved to create these spreadsheets, which include looking at past tax returns, credit history, balance sheets, income statements, cash flow statements, and other financial statements.
The underwriter should create forecasts and be able to offer explanations for them. The underwriter should explain whether or not the potential borrower will be able to make enough money to cover the loan payments or if a modification to the loan amount should be made. The underwriter will also research outside factors, such as industry data, studies related to the market, and information about the borrower’s competition. Often, the statements will be required to be detailed, but they should be able to be explained in simple terms. The underwriter should advise whether or not the loan proposal should be approved or what needs to be corrected to obtain a loan.
Usually, an underwriter works in a bank or office environment. Much of the work is done independently, so it is important to be able to adhere to time deadlines. Accuracy is also crucial in this job. Though the underwriter often does tasks alone, collaboration is also important to communicate with various parties involved in the loan process. A bachelor’s degree relating to the field is usually necessary. Many jobs require that the underwriter already have experience in a related position.