Propellus rolls out AI underwriting protocol for small business funding

Propellus Inc. said Aug. 17 it has deployed an AI-assisted underwriting system across its funding operations to speed credit decisions and support higher origination volume without matching overhead growth. The protocol standardizes analysis, scoring and compliance checks for small business financing files.

Why it matters: - Propellus is trying to scale small business funding operations without adding staff at the same pace as loan volume. - The new underwriting protocol is built to shorten the path from application to credit decision while keeping underwriting controls in place. - Faster review could help more small business applicants move through approval and funding.

What happened: - Propellus Inc. announced Aug. 17 that it deployed its AI-assisted underwriting protocol across its funding operations. - The system is called Propellus Underwriting Protocol v4.3. - The company is based in Oklahoma and specializes in merchant cash advances and small business capital solutions. - The protocol is being used across Propellus' funding subsidiaries, including Propellus Capital Partners, Inc. and Propellus Funding Corp.

The details: - The protocol applies guided automated analysis to bank statement review, revenue verification, existing debt exposure, liquidity and business behavior. - The system produces a standardized Commercial Funding Memorandum and Investment Committee Scorecard for each prospective transaction. - Propellus says the workflow is designed to compress the time between application and credit decision. - Key features include automated extraction, parsing and categorization of banking activity. - The system identifies internal transfers, financing transactions and owner or investment deposits to avoid revenue double-counting. - The protocol applies standardized, weighted Investment Committee scoring across business legitimacy, revenue quality, liquidity, existing debt and payment capacity. - It generates structured funding recommendations across four advance ranges: Preferred, Standard, Moderate and Threshold. - Built-in compliance checks cover UCC search, entity verification, public disclosures and licensing review before final approval.

Between the lines: - The launch signals a push to make underwriting more repeatable and less dependent on manual data compilation. - CEO Ralph Johnson said the system lets the credit team focus on judgment calls instead of manual work and supports growth without proportional headcount increases. - Vincent Lia, VP Business Development/ISO Relations at MCHQ, said the protocol is improving speed, precision, efficiency and accuracy in file review. - Propellus framed the rollout as part of a broader plan to expand origination capacity while maintaining underwriting discipline. - The company included standard forward-looking language warning that results could differ materially from current expectations.

What's next: - Propellus intends to expand the protocol across its funding subsidiaries as it grows origination volume. - The company will continue using the system to support underwriting discipline while increasing deal throughput. - More files are expected to move through review, approval and funding as the workflow matures.

The bottom line: - Propellus is betting that AI-guided underwriting can help it process more small business financing deals faster without diluting credit standards.