Capital Express Underwriting Guidelines

Effective: February 1st, 2026

This document outlines how Capital Express underwrites and evaluates files for approval or decline.

📉 Revenue Requirements

• Minimum Monthly Revenue: We typically only consider businesses generating $60,000+ per month in verifiable gross revenue.
• Minimum Advance Amount: New deals must meet a $25,000 minimum funding threshold.
• Revenue Verification: Deposits must reflect true business revenue. We exclude the following from consideration:
  • Other funding deposits
  • Internal transfers
  • Returns or chargebacks
  • Investors

📌 Positioning & Stacking Criteria

• First Positions:
  Capital Express is not a first-position funder. We rarely fund first-position deals unless monthly revenue exceeds $250K/ Month, the applicant passes credit and background checks + Credit must be 700+. Business has A/R that is collectible.
• Preferred Position Range:
  We are most competitive in the third to sixth position space.
• Second Position & Beyond:
  • Payment history is the key focus.
  • Credit scores are less significant if strong MCA payment behavior is demonstrated.
  • We only count weekly or daily MCA positions as valid stacking/payment history.
  • Monthly payments or credit lines are not considered MCA positions.
• Quick Stacking / Short History:
  We may decline deals if:
  • The merchant only recently entered their first position (within days or weeks).
  • The merchant stacked 2–3+ new deals in the last month.
• Daily Balances / NSF Activity:
  • Accounts showing 4–5+ NSFs per month without overdraft protection are subject to decline.
  • We flag sub-$1,000 daily balances and consider related NSFs as a red flag.

🚫 Restricted Industries

📍 State Restrictions

• California:
  We fund selectively — only well-documented, clean files are considered. We do not fund Sole Props in California.
• Hawaii:
  We are not currently funding in this jurisdictions.

💰 Pricing & Commission Structure

• Origination Fees:
  • Higher Risk Deals: Expect fees around 5%, possibly up to 10% in extreme cases.
  • Lower Risk / Cleaner Deals: Typically 3–5%.
• Standard Commission Payouts (based on sell rates only):

  In the 1.4s:

  Sell Rate	Commission (%)
  1.499	12
  1.47	11
  1.459	10
  1.43	9
  1.40	8

  In the 1.3s:

  Sell Rate	Commission (%)
  1.38	7
  1.37	6
  1.36	5
  1.35	4
  1.34	3
  1.33	2

• Low-Fee Adjustments:
  If a deal must carry an origination fee below 3%, we may request a fee-to-commission tradeoff.
  Example: A deal priced at 1.39 with a 1–2% fee may pay a 6–7% commission instead of 8%.
• Custom Structuring:
  Have a unique scenario? Don’t hesitate to reach out — we’ll do our best to accommodate.