Strategy
Welcome to our Investment Strategy and Underwriting Guidelines!
This page is your backstage pass into our decision-making process. While our focus is on the asset itself, we also consider various other essential factors. Get ready to explore the details of our approach, from evaluating assets to factoring in crucial elements that shape our investment decisions.
Our Underwriting Guidelines
Novelle Capital is distinguished by its unwavering commitment to robust underwriting standards, ensuring responsible and prudent lending practices. Rooted in a foundation of financial integrity, our underwriting guidelines embody a meticulous approach to risk management and a dedication to fostering lasting partnerships.
To qualify for financing with Novelle Capital, applicants are required to meet a minimum credit score of 660, reflecting our commitment to working with individuals who demonstrate financial responsibility. Complementing this, our underwriting criteria include a targeted Loan-to-Value (LTV) ratio of 70%, with a cap not exceeding 75%. This emphasis on a conservative LTV ratio underscores our commitment to safeguarding the interests of both borrowers and lenders, promoting sustainable and secure real estate investments.
Geographically, Novelle Capital presently extends lending services in South Carolina, Georgia, and Florida. However, we demonstrate flexibility by considering special exceptions on a case-by-case basis for an additional 23 states. This regional focus aligns with our strategic goal of offering tailored financing solutions in areas where we possess a deep understanding of local market dynamics.
As a business-to-business lender, Novelle Capital's unique approach involves assessing rates and terms primarily on an asset-based model. We recognize the importance of going beyond traditional credit scores, considering factors such as past experience with closed projects. By incorporating these additional elements into our evaluation process, we aim to provide a nuanced and comprehensive understanding of each business's financial profile.
Throughout our underwriting process, we will request certain documents. These include business entity information, operating agreements, verification of business in good standing, personal identification, and other documents relevant to the individual, business, and property. This thorough documentation process underscores our commitment to diligence and transparency.
Novelle Capital's underwriting guidelines prioritize transparency, integrity, and a meticulous approach to risk assessment. By combining asset-based lending with a holistic evaluation of applicants, including credit scores and project experience, we aim to provide tailored and reliable financing solutions that empower businesses to thrive and succeed in their ventures.