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Credit Underwriting
Credit underwriting is the process of assessing whether a borrower is likely to repay a loan and under what terms credit should be provided. It can involve analyzing income, cash flows, financial statements, existing debt, collateral and other information relevant to the borrower.
Why it matters to you
Blockchain infrastructure can automate parts of lending, but it does not automatically determine whether a real world borrower is creditworthy. For tokenized private credit and undercollateralized lending, the quality of the underwriting process can be fundamental to investment performance.
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