By S. N. Thomas, Head of Underwriting
A lender’s true value, particularly for those supporting middle-market businesses, is about going beyond the rigidity of templates and inserting creativity, diligence, and depth of expertise into the process.
Underwriting is not a mechanical, one-size-fits-all exercise. It is a collaborative, client-centric process that transforms complexity into opportunity and forges lasting partnerships. The most successful underwriting teams are anything but conventional. Their strength stems from diverse backgrounds that span investment banking, auditing, and hands-on deal-making across a wide range of corporate finance transactions, which enable them to see beyond the numbers and into the inner workings of a business.
My own journey began as an auditor, where I learned the fundamentals of accounting and earned my CPA certification. Later, as an investment banker, I gained a business-first mindset and a passion for digging deep-skills that now fuel a creative, customized approach to underwriting. When you combine a business perspective with financial acumen, you can structure deals that fit the client, not just the lender’s template.
Taking a Client-First Mentality: Putting Personalization into Partnerships
Every deal deserves its own blueprint. The most client-focused underwriters never start with “no.” Instead, they seek to truly understand what the client needs and build solutions around them. This mentality of working with clients, not against them, is essential in building trust, rapport, and long-term relationships.
Clients notice the difference when underwriters work hard on their behalf. They see that the lender is invested in their success, not just as a financier, but as a true partner.
Competitive Differentiators in Underwriting
What sets leading underwriters apart is their willingness and ability to go deeper. In-depth company analysis unlocks more value in collateral and enables structuring more competitive deals. Teams with broad experience, from smaller transactions to complex, multimillion-dollar deals, are better equipped to navigate everything from intricate intercreditor issues to unique borrower needs.
Seasoned experts bring a level of sophistication and creativity that is difficult to replicate. Decades of experience enable teams to move faster and more efficiently, knowing where to look, what questions to ask, and how to spot hidden value others might miss.
Creativity Without Compromising Risk Management
There’s a common misconception that creativity or flexibility in lending equates to higher risk. A deeper understanding of the client’s business and assets mitigates risk. By going beyond surface-level analysis, underwriters gain better insight into potential pitfalls and solutions.
For example, a surface-level review might scare off a traditional lender. Still, a more thorough analysis, digging into the company’s market opportunity, cost structure, business pipeline, and customer and vendor pricing and activities, can reveal opportunities to structure deals that others would pass on without taking undue risk. In many cases, a creative approach serves as both a risk mitigator and an accelerator, rather than a liability.
Process Innovations That Drive Speed and Confidence
Modern underwriting teams often serve as both underwriters and relationship managers, ensuring continuity and deep knowledge transfer. Investing heavily in upfront diligence and knowledge sharing reduces redundancies and streamlines third-party involvement. Senior attention at every stage builds client confidence and accelerates deal timelines.
The most effective approaches aren’t reliant on the latest technology buzzwords. They’re built on decades of expertise and a deep understanding of what matters most, allowing for quick and decisive action, even in complex transactions.
Long-Term Partnership: Beyond the Closing Table
Deep upfront diligence doesn’t just help close deals- it benefits portfolio management, too. When unexpected events arise, intimate knowledge of the client’s business enables calm, informed responses. Senior-level involvement from prescreening to closing and beyond ensures efficiency and consistency.
Having a user-friendly reputation is no accident. The best underwriters are committed to being true partners, not transactional lenders. Their focus on mutual success and ongoing support drives repeat business and client trust.
The Future of Middle Market Lending
The middle market is evolving, as are the capital needs of the dynamic businesses that power this critical segment of the economy. True partnership means building solutions with clients, not just for them, and supporting them throughout the life of the loan. Lenders who combine creativity, deep expertise, and a client-first mentality will continue to create lasting partnerships and drive innovation in the industry.
If you’re looking for an underwriting approach that sees beyond the template and puts your business at the center of every solution, now is the time to start a conversation about what’s possible.
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S.N. Thomas is a lending expert with 25+ years’ experience. As part of his extensive career, Thomas spent over 20 years at Wells Fargo, primarily in the asset-based lending group. During that time, he also gained investment banking experience working on debt and equity capital raises. Most recently, he worked at White Oak Commercial Finance as a managing director in the Underwriting Group working on conforming and stretch asset-based lending facilities.
Thomas began his career at Ernst and Young primarily working in the Corporate Finance Group on mergers and acquisitions transactions. Throughout his career, he has worked on a broad range of corporate finance transactions and helped his clients achieve diverse goals.
