Credit assessments are based on the SME's and buyer's (in case of invoice financing) ability and willingness to pay.
Funding Societies evaluates the creditworthiness of SMEs using a range of financial tools, focusing on key metrics such as the Profit and Loss (P&L) statement, balance sheet, debt structure, management performance, and prevailing market conditions. This assessment is conducted in the context of the requested loan amount and repayment period.
Beyond financial indicators, Funding Societies also examines the SME’s and personal guarantors’ (PGs) historical credit behavior, including past obligations, repayment patterns, and any litigation history. This evaluation helps determine their reliability, integrity, and sustained ability to meet debt commitments.
Due Diligence Scope (Varies on a case-by-case basis)
Site Visits – Conducted physically or virtually for verification.
Document Review – Examination of key financial documents (e.g., bank statements, aging list or invoices).
Credit Bureau Report - Individual (“BRI”) (Individual Risk & Litigation Check) on Directors & Personal Guarantors – Assessing business interests and any legal matters.
Credit Bureau Report - Corporate (“BRC”) (Business Risk & Litigation Check) on the Company – Evaluating the company’s legal and financial standing.
Credit Bureau Singapore Report (“CBS”) on Personal Guarantors – Reviewing personal credit facilities of guarantors.
Know-Your-Customer / Anti-Money-Laundering (“KYC/AML”) Checks – Ensuring compliance with regulatory requirements.
Due Diligence on Debtors (for Invoice Financing) – Evaluating debtor credibility in invoice financing cases.
Financial Analysis – Assessing financial health and stability.
Based on the collected data, we compile fact sheets for Investors, summarizing our assessment with figures. These fact sheets are accessible during the pre-crowdfunding period, enabling Investors to make well-informed decisions.