AI for commercial lenders, from the first spread to the last covenant test.
Bluegrass builds production AI systems for commercial lenders, including banks' commercial teams, specialty finance companies and private credit funds. They take over the document work on either side of a credit decision, run in your own environment and belong to you.
Commercial credit still depends on analysts reading and rekeying borrower documents, which limits how many deals a team can underwrite and how closely it watches existing loans. Every system we build leaves the credit judgment with the people accountable for it.
Where a commercial lender's time goes
Spreading and the memo
Every request means spreading several years of financial statements and the owners' tax returns, then writing a credit memo from the same documents.
Closing
Loan documents, guaranties, entity documents and insurance have to be checked against the approval before funding, usually under a deadline.
Covenants and borrowing bases
Compliance certificates, borrowing base certificates and financial statements arrive on different schedules, and each has to be tested against the agreement's own definitions.
Annual reviews
Every relationship needs an annual review that repeats the spreading and the analysis, and the reviews pile up at year end.
What we build for commercial lenders
SBA loan packaging
Applications checked against SBA eligibility requirements and your credit policy, with the SBA forms prepared and the file assembled for the underwriter, so fewer packages go back for missing items.
Loan request intake
Requests from brokers, the website and relationship managers summarized, checked for complete documents and compared with your credit box before an analyst picks them up.
Credit agreement abstraction
Credit agreements and amendments abstracted into the loan system, so pricing grids, covenants, reporting requirements and consent rights are recorded once and tracked from then on.
These are examples of what we can build for commercial lenders. Pick one up as-is, have it tailored to you or suggest something entirely new.
Talk to an engineerWhere to start
For most commercial lenders we recommend starting with spreading, because every analyst does it and every spread can be checked against its source. Where the portfolio is the bigger problem, start with covenant and borrowing base monitoring, since a breach found late costs more than finding it early.
The 4-week Opportunity Evaluation tests that on your own deals and portfolio before anything is built and says so if your loan origination system or a spreading product already does the job.
Questions and answers for commercial lenders
- Does it make credit decisions or assign risk ratings?
- Credit decisions and risk ratings stay with your analysts, credit officers and committee. The systems read, calculate and draft; scoring borrowers or predicting default is outside our practice.
- Can it work for private credit funds?
- Direct lenders and credit funds do the same work at a different rhythm, with quarterly packages and negotiated definitions. The systems are built around each fund's own templates and investor reports.
- Will it work with our loan origination and servicing systems?
- The systems connect to the loan origination, servicing and document systems you run, and the evaluation confirms how before anything is built.
A senior team that has done this before
We are a small, entirely senior team with fifty years of combined AI engineering, multiple granted patents and Y Combinator founders, from Yale, MIT, McKinsey, Goldman Sachs, Microsoft and Vista Equity Partners. The people who scope your work are the people who write the code.
Selected work
We built the AI transformation roadmap for a top-50 P&C brokerage, and it is saving the firm millions of dollars in vendor fees it did not need to pay.
Clients include some of the largest banks, RIAs, fintechs and AI labs, as well as a top-3 P&C carrier, a top-10 P&C brokerage, a top-5 trucking brokerage, a leading specialty MGA and a leading trucking MGA.
We run only 3 to 5 engagements at a time, so that every client works directly with the senior team.
About the team- Dozens
- of insurance companies, RIAs, banks and fintechs we have worked with
- 50 yrs
- combined AI engineering experience
- 10+ Patents
- granted to members of the team
- 100%
- of the IP we build is assigned to you
Tell us which workflow costs your team the most time.
A 30-minute call with an engineer usually shows whether something is worth building. Within a week you will have a free written point of view on the two or three opportunities we think are real and what each is worth.