Part 2: The Creative Economy and The Traditional Underwriting Model

However, when you look inside at the actual cashflows of the creator’s business, the business may be more financeable than when viewed from the outside with blunt metrics and heuristics.

Instead, banks would rather see borrowers have hard assets (e.g. cash or property) or a job description (i.e lawyer, accountant, etc.) that matches a set of borrowers they’ve underwritten before and whose loans governments and investors would happily buy. Creators don’t fit this mold.

1) The banks have to predict your income through the life of the loan in order to assess your ability to repay. Because banks do not have a long history of data sets on Substack revenue or other creator based content, both across borrowers and through time, they probably can’t predict your income with the same level of certainty as they can for tho... See more

Would a commercial bank consider revenue from a blog in your debt/ income ratio? Probably not for the following reasons: