If you place bridging or development cases, you know the routine. You find a lender, you get a decision in principle, and then you wait to see whether it survives underwriting. Sometimes it does. Often it doesn’t.
Credit-backed loans are built to remove that gamble.
Here is the simple version. When you place a credit backed loan case with Broka, it is matched in real time to lenders who are actively lending against that type of case. Participating lenders now offer ‘credit backed loans’ as well as ‘indicative terms’. With ‘credit backed loans’, the credit underwriting work is done up front, by uploading the lenders underwriting requirements with the application. On suitable cases, what you get back is not a maybe or indicative. It is a fully underwritten, credit-backed offer, with the valuation already factored in, subject only to standard legal completion.
That word “credit-backed” is the point. Most of the market runs on decisions in principle: a lender’s early view, given before the real underwriting has happened. It looks like progress, but it is really a promise to decide later. A credit-backed offer is the decision, already made.
For you, that changes the shape of the whole case:
- You are not selling your client a maybe. You are giving them a real offer.
- The underwriting has already happened, so there is no cliff-edge three weeks in.
- The valuation is factored in, so the number in front of the client is the number.
- You look sharper to the lender, because the case arrives properly packaged, with everything they need to make a ‘credit backed decision’.
None of this means guaranteed funding, and it does not mean every case will qualify or be approved. Some property, title or planning situations still need the regular route, via ‘indicvative terms’. What it means is that, on suitable cases, where a credsit backed loan is an option, you spend less time chasing and waiting, and more time placing cases that actually complete.
That is what credit-backed loans are. In our upcoming series, we will cover how bridging drifted away from this, where the weeks really go, and why the decision in principle is the single biggest reason cases fall over.
