How we underwrite: Three Stages, One Goal
Every PGI application goes through our proprietary underwriting engine - a three-stage evaluation process designed to assess risk fairly and consistently. We evaluate the fundamentals of your business, grade your industry and operational continuity, and assess the geopolitical and regulatory environment where you operate.
The result is a score that reflects the true risk profile of your guarantee. No black box. No guessing. You submit your information, and our system evaluates it the same way every time.
Stage 1: CORE Risk ScoreTM
We evaluate 13 essential questions that measure your business fundamentals: revenue, profitability, cash flow, collateral, personal credit, and loan structure.
The Essential Questions
- NAICS industry code for the business
- Business age and operating history
- Desired PGI coverage limit
- Annual business revenue
- Annual EBITDA (operating profit)
- Total business debt
- Total monthly business loan payments
- Business collateral pledged
- Estimated enterprise value
- Bankruptcy, insolvency, judgment, or lien history
Stage 2: Industry Score
An underwriter grades your application based on your supported NAICS code, business plan, management experience, and continuity strategy - factors that can't be automated.
What the Underwriter Evaluates
- Business Plan: Clarity, realism, and alignment with stated use of funds
- Operational Continuity: Business Insurance, operational resilience
- Industry Performance: Historical public and private data lookups for NAICS code
- Trajectory: Is the business stable, declining, or growing? What's the outlook?
Stage 3: Geopolitical Score
We assess the regulatory environment, sanctions compliance, and geopolitical risk factors in your operating jurisdiction.
What We Evaluate
- Jurisdiction Assessment: Where the business operates; unique regulatory or economic conditions
- Sanctions Compliance: Gov sanctioned screening (anti-money laundering) for business owners, and key stakeholders
- Regulatory Environment: Pending regulatory changes, industry-specific rules, licensing requirements, moratoriums etc.
- Market Stability: Economic conditions, unemployment, cost of living, and business climate in region
- Political Risk: Any geopolitical factors that could impact business stability or loan repayment
Why This Framework Works
Data-Driven, Not Arbitrary
Every question we ask maps directly to a financial or operational metric we can measure. We don't make gut calls. We don't penalize you for factors you can't control. Your score reflects the actual risk you represent to us.
Consistent Across All Applicants
The same framework, the same 13 questions, the same scoring rules apply to every applicant. A borrower in Texas gets evaluated the same way as one in California. This consistency is how we scale fairly.
Transparent Throughout
After you submit your application, you'll see your CORE Risk ScoreTM, the industry grade, and the key factors that moved your score. You'll understand why you were approved (or declined) and what you could change if you want to reapply.
Blends Human Judgment with Automation
The fundamentals (Stage 1) are calculated automatically from your answers. The industry score (Stage 2) is always reviewed by a human underwriter - because business judgment, continuity planning, and management quality can't be fully automated. The geopolitical assessment (Stage 3) is automated but escalated if needed.
Your Score Isn't Final Until Underwriting Is Complete
The CORE Risk ScoreTM you see in your app is indicative. Once our underwriter completes their review of Stage 2 and Stage 3, they may adjust the final score slightly based on factors that emerge during document review. This is rare - usually the final score aligns closely with your initial CORE Risk ScoreTM.
After Your CORE Risk ScoreTM
Approval & Underwriting
If you pass Stage 1 eligibility gates and achieve a CORE Risk ScoreTM that fits our appetite, we move to underwriting. Our underwriter requests supporting documents (financial statements, tax returns, loan agreements, business plans) and completes their review of Stage 2 and Stage 3.
Quote & Coverage Offer
Once underwriting is complete, we issue a premium quote and coverage terms. This is based on your full risk profile and the amount of coverage you're requesting. You'll see the annual premium, the coverage limits, and any exclusions or special conditions.
Bind or Decline
You review the quote and decide. If you accept, you bind coverage (in some states, this is instant; in others, we issue a formal policy). If you decline, no problem - you can reapply anytime.
Coverage Active
Once bound, you're covered. If your personal guarantee is called, you file a claim. We handle the rest, subject to the policy terms.
Questions About Our Process?
Head over to our FAQ page for detailed answers to common questions about underwriting, eligibility, and how we evaluate applications.