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Recently, while coaching an originator, he asked to review a transaction that had been declined over the past week. His concern was familiar: credit adjudication must have tightened dramatically in 2026.
He explained that the same end‑user had been approved for five schedules in 2025, funded internally, yet now his company couldn’t secure an approval for the end‑user’s largest request to date. After his internal credit team declined the deal, they submitted it to three external funding partners. All three declined it as well.
When I asked the originator to walk me through the credit package, the gaps were immediate and significant:
- He couldn’t state the end‑user’s leverage.
- He didn’t know the impact of the five prior financings on cash flow.
- He didn’t know whether the end‑user was profitable in 2025.
In other words, he had no ability to articulate the borrower’s financial condition, risk profile, or repayment capacity.
So I asked a more important question:
“Would you invest your own hard‑earned money in this transaction, knowing your company and three partners already passed on it?”
His answer was revealing—and honest:
- He admitted he isn’t a credit professional and doesn’t know how to evaluate a credit package.
- If he did have the capital, he would demand a higher return because the transaction appeared higher risk.
- Before investing his own money, he would want more information—proof of repayment ability, stronger collateral, and a clearer understanding of the end‑user’s financial health.
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If you wouldn’t invest your own money, why should anyone else?
Top originators don’t just submit applications. They think like investors. Their priority is protecting their companies, funding sources, investors, and banking relationships. They understand the strengths and weaknesses of every submission. They know how to frame a credit story, anticipate questions, and address risk before a credit professional ever sees the file.
Originators who develop credit fluency and think like investors, consistently outperform their peers. They win more approvals, structure better transactions, and build deeper trust with end-users, vendors and funding partners. They become advisors, not order takers.
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