Looking for the thoughts of anyone who has experience or familiarity in cash flow based lending, especially for individual consumers (such as what Kabbage does). How does the industry judge cash flow underwriting today–i.e. how do you collect your cash flow data? How is cash flow data best presented to lenders?
What are the challenges of cash flow underwriting? Where does it fail? Where are the holes in it?
Where is cash flow underwriting going–what is the next innovation, and why hasn’t that happened yet?
Any thoughts are welcome