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Risk Assessment at Lendo

Lendo effectively employs its team’s finance expertise with innovative ideas and advanced technology to bring forth SME financing solutions and investment opportunities for its customers. 

Both parties get fast access to their desired solutions without making them suffer the tedious processes of conventional financing options.

How it works?

How exactly does Lendo analyse the risk associated with each invoice financing opportunity, you may wonder as an investor.

Only Approved SMEs Land on the Lendo Platform

The only businesses that land on the Lendo platform as investment opportunities are the ones that pass our rigorous checking process.

We take in consideration (including but not limited to) the following aspects in order to assess the borrower’s ability and willingness to repay:

  • Revenue threshold
  • Vintage of the company
  • Level of debt Sector

More Than 100 Data Points Collected on Each SME

Lendo’s team harnesses the efficiency of a proprietary credit scoring database that collates hundreds of data points that automatically produce a score that is proportionally weighted to reflect the value of the inputs.

The data points can be divided into three major categories:

  • Repayment Strength
  • Owner Commitment
  • The Analysis of External Reports

These data points are then used to produce the final credit report, on the basis of which Lendo applies a risk band or risk rating with each funding opportunity. Moreover, a mandatory site visit is also done by a member of our team who interviews the management and observes the site for further satisfaction.


Risk Bands

We serve a wide segment of SMEs, and assign a risk rating (A,B,C, or D) that reflects a combination of the SME’s following strengths:

Company Credit History

All historical records collected from local credit bureaus Bayan and SIMAH

Financial Position

Audit Financial Records from MCI and Bank Statements 

Owners Maturity

Personal credit history and other maturity strength such as experience and personal wealth 

Invoice Strength

Class of buyer and the historical records of invoices for the same buyer

Following are the risk bands under which we categorize each investment opportunity and the factors we consider for it:

A

B

C

D


A

Supported by a Corporate / Parental Guarantee.

Company Credit History: Excellent 

Financial Position: Excellent – Very good

Owners Maturity: Excellent 

Invoice Strength: Excellent – Very good 


B

Supported by a Corporate / Parental Guarantee.

Company Credit History: Excellent – Very good 

Financial Position: Very good

Owners Maturity: Excellent

Invoice Strength: Excellent – Very good


C

Supported by a Corporate / Parental Guarantee.

Company Credit History: Very good

Financial Position: Very good – Good 

Owners Maturity: Excellent – Very good 

Invoice Strength: Very good – Good


D

Supported by a Corporate / Parental Guarantee.

Company Credit History: Very good – Good 

Financial Position: Good – Fair

Owners Maturity: Good

Invoice Strength: Very good – Good

Need More Details?

Get in touch with our team right away with any questions regarding lending or borrowing and we’ll get back to you as soon as we can

Contact US Now
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