Origination
Grow the lending you understand.
Which applications fit our risk appetite—and make economic sense?
A busy application pipeline is not the same as a healthy lending business. Bring repayment capacity, default risk, exposure and expected contribution together before deciding how much to lend, for how long and on what terms.
THE BUSINESS CHALLENGE
What the headline
can miss.
A single score can hide the reason an application needs attention. A high lending rate can hide funding and credit costs. Inconsistent reviews can make it difficult to explain why similar applications received different treatment.
DECISIONS IT SUPPORTS
What you can examine.
- Separate approval, referral and missing-evidence decisions.
- Compare amount, tenure, security and contribution on the same basis.
- Understand which borrower and facility segments are actually supported by the evidence.
EXAMPLE / A BUSINESS DECISION
For an MSME working-capital application, review the business’s cash conversion, application risk and potential exposure. Compare proposed terms using expected contribution, then apply your own documented credit policy.
Start with the evidence.
Application snapshots, dated financials, facility terms and later performance outcomes are the starting point. Inputs used for the original decision must have been available on that date.
Understand the data process →Keep the decision yours.
Use the analysis alongside your credit policy. Your team sets eligibility, decides when further review is needed and records exceptions. See where information is incomplete and how much the answer changes when assumptions change.
See how review works →Explore the relevant models
Application default risk
Which new applications deserve a closer look?
Use, data and diagram →M02MSME financial distress
Does the business have the financial capacity to support the loan?
Use, data and diagram →M07Exposure at default
How much could be at risk when default happens?
Use, data and diagram →M09Loan profitability
Is the proposed lending worth doing after costs and risk?
Use, data and diagram →M14Risk-adjusted return
Which opportunities earn an adequate return on the capital they use?
Use, data and diagram →M16Model uncertainty
Would the decision change if the estimate were less certain?
Use, data and diagram →