A credit memo template for agent-prepared applications has the usual sections, borrower, request, financial analysis, repayment capacity, security, risks and policy exceptions, plus one more: a preparation statement showing which agent drafted what, from which sources, and what it could not verify. The underwriter writes the recommendation. The agent never does.
Why does an agent-prepared memo need a different template?
A credit memo is the record a lender relies on when it decides, and later when it explains that decision to an auditor, a regulator or a court. When a person drafts it, everyone knows who stands behind each figure. When an agent drafts it, that link has to be made explicit, or the memo will read with more authority than its sources deserve.
So the template does three things a standard memo does not. It marks each figure with its source and provenance. It separates what the agent drafted from what the underwriter wrote. And it lists gaps in a section of their own, rather than leaving them to be noticed. The process that produces the memo is covered in how to let an AI agent prepare credit applications in your origination system.
When should you use it?
Use it for any credit decision where an agent has gathered documents, spread financial statements or summarised the application. It suits business lending best, where memos are long and analysis is heavy. For consumer lending, a shorter version works, often combined with the evidence an agent collects in processes such as gathering documents for mortgage applications.
If the case does not fit policy and needs to go to a more senior approver, attach a credit referral note to the memo rather than stretching the memo to carry the argument.
How do you complete each section?
The agent drafts sections 1 to 8 at depth 2. The underwriter reviews every one, edits as needed, and writes sections 9 and 10.
- Financial figures carry their source in brackets. Audited accounts and bank data are signed; management accounts and forecasts supplied by the applicant are declared.
- Credit score or rating is reported with the model or bureau it came from and the date. The agent quotes it; it does not interpret it into a decision. What credit scoring is explains the limits.
- Gaps list every document missing, every figure that could not be reconciled, and every check not yet run.
The credit memo template
- Applicant. Legal name, registration, ownership, years trading, relationship history.
- Request. Amount, product, term, purpose, proposed pricing.
- Background. What the business does, its market, key customers and suppliers.
- Financial analysis. Revenue, margins, profit, gearing and liquidity over at least two periods, each with source and provenance.
- Repayment capacity. Cash available for debt service against proposed repayments, including a stressed case.
- Security and guarantees. What is offered, its value, the basis of valuation.
- Risks and mitigants. Each risk in a sentence, with any mitigant.
- Policy check. Each lending policy criterion: met, not met, not applicable. Exceptions listed.
- Underwriter's assessment and recommendation. Written by the underwriter.
- Decision. Approver, date, conditions.
Preparation statement. Agent name and brief version; sections drafted by the agent; sources used with provenance; checks run, including any credit check run by the agent; gaps; underwriter edits recorded.
A filled sample: working capital facility of 150,000
A hypothetical wholesaler asks for a 150,000 revolving facility.
| Section | Sample entry |
|---|---|
| 2. Request | 150,000 revolving facility, 12 months, to fund seasonal stock |
| 4. Financial analysis | Revenue 2.1 million and 1.9 million in the last two years (filed accounts, signed); current year to date 1.2 million (management accounts, declared) |
| 5. Repayment capacity | Cash available for debt service 210,000; proposed facility cost 14,000 a year; stressed case covers it with room to spare |
| 6. Security | Debenture offered; personal guarantee from the managing director |
| 7. Risks | Two customers make up much of revenue; mitigant: contracts run for a further two years (copies supplied, declared) |
| 8. Policy check | Trading history met; gearing met; customer concentration exceeds guideline: exception |
| Preparation statement | Credit Prep Agent v3.2; drafted sections 1 to 8; 2 gaps: aged debtor list not supplied, year-to-date figures not reconciled to bank data |
| 9. Underwriter | Requested aged debtors; reconciled year to date to bank data; recommended approval with a concentration covenant |
The preparation statement is what made the review fast. The underwriter did not have to discover the two gaps; they were listed. The exception on customer concentration went to a senior approver with a referral note.
Where Pryme fits
In Pryme, the credit preparation capability runs at depth 2, so the memo is held for a named underwriter. Every figure arrives stamped with its source class through the Pryme Context Protocol, which is how the preparation statement is built. For the wider position on lending, see the guide to AI agents in banking.
Questions people ask
Can the agent write a draft recommendation?
It should not. A draft recommendation anchors the reviewer, and creditworthiness assessment of individuals is high-risk under the EU AI Act. Keep the agent to analysis and let the underwriter conclude.
How should underwriter edits be recorded?
Keep the agent's draft and the final memo, with the differences visible. Edits are useful evidence for certification: a section that is always rewritten shows where the agent is weak.
Does the memo replace the origination system record?
No. The memo explains the decision; the origination system records it. Link them with the application reference.