Specialist credit scoring on SMEs

CreditSME Score

CreditSME Score

CreditSME Score - Overview

The CreditSME Score is a proprietary system that is solely focused on scoring the credit profile of a SME. The CreditSME Score factors in a large number of qualitative and quantitative factors of a SME that can broadly be categorised into the following segments:

Financial - traditional credit metrics analysis including leverage, debt service, interest cover, and asset cover

Qualitative - assessment of various qualitative factors specific to the credit profile of a business including operating history, industry position and management capabilities

Corporate structure - factors in the structure of the company, director profiles and other aspects that are relevant to the credit profile of a business   

Industry factors - incorporate various industry factors and how this may impact on a business credit profile

The CreditSME Score is typically on a scale of 1 to 100 though can be tailored to align with a client's existing internal ratings scale. The CreditSME Score can be on a point in time basis or monitored on an on-going basis and rescored at certain intervals.    

The CreditSME Score is a useful tool for lenders in both their up-front credit assessment of a prospective borrower and as part of the on-going credit review process.

The CreditSME Score is also a useful tool for businesses that are seeking finance from a lender or take on counterparty, operational or reputation risk in their ordinary course of business such as extending credit terms to customers or appointing sub-contractors on projects.  

Key Benefits

For Businesses Seeking Finance

The CreditSME Score provides businesses with an understanding of how they will be viewed by lenders when submitting a business loan application.

Quick and simple process.

No credit enquiry registered against your business (as occurs when lenders undertaken a loan assessment).

For Lenders

Provides an independent view on a business credit profile using established and consistent methodologies

Helps to streamline the credit assessment process through the collation of a wide range of data that is presented in a clear and concise format

Improved portfolio outcomes through an additional layer of data rich credit analysis

Ultimately a powerful tool in a credit screening, assessment and review process for a streamlined credit assessment process and improved portfolio outcomes whilst also creating efficiencies for relationship managers and credit teams.    

For Businesses Taking Credit Risk

Obtain an understanding on the credit profile of customers, suppliers and other counterparties where the business may be exposed to a level of credit risk.

Benchmark certain clients, sub-contractors or other counterparties when making a decision on the awarding of contracts to counterparties or extending credit terms to customers

About Us

The team at CreditSME have extensive experience in credit analysis, business lending and debt advisory for businesses of all sizes. 

CreditSME has origins as a debt advisor and commercial broker and has thus worked with a large range of SME clients and bank and non-bank lenders. We have therefore developed a solid understanding of the key drivers of the credit profile of SMEs that is reflected in the CreditSME Score for each business.