Apr 13, 2025

AI‑Powered Underwriting

AI‑Powered Underwriting: The Fastest Path to a Lender’s Competitive Edge


TL;DR

  • AI cuts average underwriting time from 6 weeks to <1 week

  • Early adopters see 30‑50 bps lower default rates thanks to real‑time risk monitoring

  • Automating credit memos and ratio extraction saves $120k+ p.a. per analyst


Why Speed Equals Alpha in Private Credit

Private credit deals are won—or lost—during underwriting. The faster a lender can collect data, assess risk, and issue terms, the higher the probability of closing premium‑yield opportunities ahead of competitors. In 2025, the delta is measured in hours, not weeks.

The AI Advantage

  1. Automated Data Collection – OCR + LLM pipelines ingest bank statements, AR/AP ledgers and tax returns in minutes.

  2. Autonomous Ratio Analysis – Domain‑fine‑tuned models calculate >40 industry‑specific KPIs (DSCR, ARR churn, biotech runway, etc.) with <1% error.

  3. Dynamic Risk Scoring – Streaming data triggers re‑scoring events; lenders see early‑warning signals 30‑days sooner than manual reviews.

Real Numbers From the Field

Metric

Traditional

With Insight Funders AI

Initial doc review

18 hrs

2.3 hrs

Credit memo draft

3 days

45 min

Analyst cost / file

$4,000

$250

Average close rate

31%

86%

Implementation Checklist

  • Secure Data Room API (SOC 2 Type II)

  • Fine‑tuned Llama 3 + Retrieval Augmentation

  • Human‑in‑the‑Loop QA for regulatory peace‑of‑mind

Bottom Line

AI underwriting is no longer a nice‑to‑have. It is table stakes for lenders seeking excess spread and market‑share growth in 2025.

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Dsclaimer

Insight Funders INC is not a registered investment adviser or registered broker-dealer and does not provide investment recommendations or advice of any kind. Any materials provided are solely for informational purposes and should not be construed as an offer to sell or the solicitation of an offer to buy any securities, or participate in any investment, nor as intended to provide, and should not be relied on for, investment, tax, financial, accounting, legal, regulatory or compliance advice. The opinions and analysis contained in any materials provided may be based on published and non-published sources prepared by unrelated third parties. While such sources are believed to be reliable and written in good faith, they have not been independently verified and no representation or warranty, expressed or implied, is made as to the accuracy, completeness, or timeliness of such information. Except where otherwise indicated, any materials provided are based on information in existence as of the date of preparation, and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Prior to making an investment decision, you should (i) conduct your own investigation and analysis, (ii) carefully consider an investment’s risk factors, investment objectives and strategy, fees and expenses, and any tax consequences that may result from investing, and (iii) consult with your own investment, tax, financial, accounting, and legal advisors. The value of an investment may go down as well as up, and you may lose some or all of the money that you invest. You should ensure that you have the financial capacity to hold any investments that you make for an indefinite period of time, regardless of any resale restrictions, and only invest an amount that you can afford to lose. Neither the U.S. Securities and Exchange Commission nor any state securities commission or federal or state regulatory authority has recommended or approved any investment or reviewed or approved the accuracy or completeness of any of the information or materials provided through the Insight Funders portal. Past performance is no guarantee of future results. Investing in private credit involves a high degree of risk, including the potential for a complete loss of an investment.

Dsclaimer

Insight Funders INC is not a registered investment adviser or registered broker-dealer and does not provide investment recommendations or advice of any kind. Any materials provided are solely for informational purposes and should not be construed as an offer to sell or the solicitation of an offer to buy any securities, or participate in any investment, nor as intended to provide, and should not be relied on for, investment, tax, financial, accounting, legal, regulatory or compliance advice. The opinions and analysis contained in any materials provided may be based on published and non-published sources prepared by unrelated third parties. While such sources are believed to be reliable and written in good faith, they have not been independently verified and no representation or warranty, expressed or implied, is made as to the accuracy, completeness, or timeliness of such information. Except where otherwise indicated, any materials provided are based on information in existence as of the date of preparation, and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Prior to making an investment decision, you should (i) conduct your own investigation and analysis, (ii) carefully consider an investment’s risk factors, investment objectives and strategy, fees and expenses, and any tax consequences that may result from investing, and (iii) consult with your own investment, tax, financial, accounting, and legal advisors. The value of an investment may go down as well as up, and you may lose some or all of the money that you invest. You should ensure that you have the financial capacity to hold any investments that you make for an indefinite period of time, regardless of any resale restrictions, and only invest an amount that you can afford to lose. Neither the U.S. Securities and Exchange Commission nor any state securities commission or federal or state regulatory authority has recommended or approved any investment or reviewed or approved the accuracy or completeness of any of the information or materials provided through the Insight Funders portal. Past performance is no guarantee of future results. Investing in private credit involves a high degree of risk, including the potential for a complete loss of an investment.

Dsclaimer

Insight Funders INC is not a registered investment adviser or registered broker-dealer and does not provide investment recommendations or advice of any kind. Any materials provided are solely for informational purposes and should not be construed as an offer to sell or the solicitation of an offer to buy any securities, or participate in any investment, nor as intended to provide, and should not be relied on for, investment, tax, financial, accounting, legal, regulatory or compliance advice. The opinions and analysis contained in any materials provided may be based on published and non-published sources prepared by unrelated third parties. While such sources are believed to be reliable and written in good faith, they have not been independently verified and no representation or warranty, expressed or implied, is made as to the accuracy, completeness, or timeliness of such information. Except where otherwise indicated, any materials provided are based on information in existence as of the date of preparation, and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Prior to making an investment decision, you should (i) conduct your own investigation and analysis, (ii) carefully consider an investment’s risk factors, investment objectives and strategy, fees and expenses, and any tax consequences that may result from investing, and (iii) consult with your own investment, tax, financial, accounting, and legal advisors. The value of an investment may go down as well as up, and you may lose some or all of the money that you invest. You should ensure that you have the financial capacity to hold any investments that you make for an indefinite period of time, regardless of any resale restrictions, and only invest an amount that you can afford to lose. Neither the U.S. Securities and Exchange Commission nor any state securities commission or federal or state regulatory authority has recommended or approved any investment or reviewed or approved the accuracy or completeness of any of the information or materials provided through the Insight Funders portal. Past performance is no guarantee of future results. Investing in private credit involves a high degree of risk, including the potential for a complete loss of an investment.