Capital Readiness Framework

What is capital readiness framework?

The Capital Readiness Framework is a five-component model — Personal Credit, Business Credit, Documentation, Financials, Lender Match — that produces a composite Funding Readiness Score predicting approval probability across major lender categories.

Why this matters

• Approval probability is multiplicative across components; weak component = compounding decline risk.
• Composite score predicts not just yes/no but term, rate, and amount.

How it works

• ›Personal Credit (0–100): score, utilization, recent activity.
• ›Business Credit (0–100): PAYDEX, Intelliscore, tradelines, file age.
• ›Documentation (0–100): completeness, freshness, accuracy.
• ›Financials (0–100): DSCR, current ratio, debt-to-equity, revenue trend.
• ›Lender Match (0–100): profile alignment with target lender's published criteria.

Examples in practice

Step-by-step process

1. 1

   Score each component
2. 2

   Identify weakest
3. 3

   Remediate to target composite
4. 4

   Re-score quarterly

Action checklist

• Personal Credit ≥ 75
• Business Credit ≥ 75
• Documentation ≥ 90
• Financials ≥ 70
• Lender Match ≥ 80

Common mistakes to avoid

• Optimizing one component to 100 while others sit at 50
• Treating composite as static rather than quarterly

Frequently asked questions