Underwriting is the assessment a lender carries out on a loan application to decide whether to lend, how much, and on what terms. It is the stage where the lender weighs up the application against its lending criteria.
What underwriting considers
Underwriting for business lending generally looks at the company itself rather than any individual. The exact factors vary by lender and product, but the aim is to understand whether the borrowing is suitable and likely to be repaid.
- The company's trading position and financial information.
- How the borrowing fits the business's needs and plans.
- The lender's own criteria for the product applied for.
How decisioning works at Credicorp
Credicorp assesses applications from UK limited companies and LLPs for business purposes. The outcome and the terms offered reflect your company's circumstances. If an application is not approved, or is approved on particular terms, that decision follows the assessment of the information provided.
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 have questions about how a decision was reached, our team can talk you through what was considered.
See also: How lenders assess a business loan application, What is security on a loan?, How do you decide whether to lend to my business?.