Underwriting

Underwriting is the process a lender uses to assess the risk associated with a credit application. The underwriter reviews financial information, credit history, business performance, security offered, and other factors to determine whether the risk is acceptable and, if so, what interest rate and terms to apply.

Underwriting varies significantly in depth and speed depending on the product and lender. Fintech lenders using automated underwriting can make decisions in minutes using bank data feeds, credit bureau data, and algorithmic scoring. Traditional lenders may take days or weeks for manual underwriting of more complex cases.

Through a broker like Spark Finance, your application is assessed by an experienced adviser before being submitted to lenders most likely to approve. This means the underwriting process is more targeted - reducing the number of applications needed and improving approval rates compared to approaching lenders directly without specialist guidance.

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