Credit assessments are based on the SME's and buyer's (in case of invoice financing) ability and willingness to pay.

For assessing ability, FS looks at a number of financial tools to evaluate the credit worthiness of an SME. Much of the evaluation relies on analyzing the SME's Profit and Loss (P&L), balance sheet, cash flow statements, inventory turnover rates, debt structure, management performance, and market conditions with the context of the note quantum and tenor.

To assess credit worthiness, Funding Societies looks into the history of trustworthiness, moral character, and continued performance that demonstrate a debtor's ability to repay. Mainly via the SME's and PGs' past credit obligations, repayment records and litigation (if any).

A summary of our due diligence scope (may vary on a case to case basis):

1. Site visits (Physical verification)
2. Sighting of original documents (bank statements, invoices etc.)
3. BRI (Business interest and litigation info) on Directors & PGs
4. BRC (Business interest and litigation info) on Company
5. CBS (individual credit facility) of PGs
6. KYC/AML checks
7. Due Diligence checks on debtors (for IF)
8. Financial Analysis 

Based on the above data collected, we prepare factsheets for Investors that will be available for viewing during the pre-crowdfunding period. This puts our assessment into words and figures for better clarity, so that Investors can make a more informed decision.