---
title: Private Credit Underwriting
description: Underwrite a property-backed or direct-lending private-credit deal — LTV, coverage, security, covenants and a risk-adjusted pricing view.
category: Finance
sublabel: Private Credit
author: Predictive Labs
tags: private credit, lending, underwriting, real estate
---

# Private Credit Underwriting

Assess a private-credit opportunity (e.g. property-backed bridge, development or bullet loans,
or direct lending) and form a risk-adjusted view on whether and how to lend.

## When to use

- Underwriting a new loan for a private-credit book or marketplace.
- Reviewing a borrower request against lending policy.

## Inputs

- Loan request: amount, term, purpose, structure (bridge/development/bullet).
- Security: asset(s), valuation, lien position.
- Borrower/sponsor track record and the exit/repayment plan.

## Steps

1. Compute the core metrics: LTV (and LTGDV for development), interest coverage, and headroom.
2. Assess the security package and enforceability of the lien position.
3. Test the exit: refinance, sale or cash-flow repayment — and its sensitivity to stress.
4. Set covenants and monitoring triggers proportionate to the risk.
5. Recommend price (rate/fees) for the risk, or decline with the binding reason.

## Output

An underwriting summary with key ratios, a security and exit assessment, proposed covenants,
and a risk-adjusted pricing recommendation.


## Presenting results
- Present every result as one or more clear Markdown **tables** — one per section, each with a short heading.
- Keep prose minimal; put the substance in the tables.
- Offer the user a downloadable **PDF** (formatted) and **CSV** (the underlying rows), and generate them when asked.
- Never invent figures. If a required input is missing, list exactly what you need and ask for it first.