Origination is the term lenders use for the process of creating a new loan, from the first application right through to the point where the funds are made available. It covers everything that turns an enquiry into a live facility.
What origination usually involves
Origination brings together the steps a lender takes before money is advanced. The detail varies by lender and product, but the shape is broadly similar across business lending.
- Taking the application and the information needed to assess it.
- Carrying out the assessment, or underwriting, of the request.
- Issuing an offer and, once accepted, setting up the facility.
How it works at Credicorp
For Credicorp, origination applies to applications from UK limited companies and LLPs borrowing for business purposes. Once an application is assessed and an offer accepted, the facility is set up and funds can be made available according to the agreed terms.
Credicorp is an exempt business lender operating outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply. If you want to understand where your application is in the process, our team can update you.
See also: What is underwriting?, What is a drawdown?, How fast can I get a business loan?.