Every proposal and business has a different level of risk; some will be low risk and others of a higher risk. The differing levels of risk are reflected in the interest rate and so each loan request is assigned a risk band and this is done via a Credit Rating Score Band (CRSB).
The CRSBs are:
A – Low Risk
B – Medium Risk
C – Average Risk
D – High Risk
In order to avoid applicants attempting to present information in such a way as to improve the CRSB we do not disclose how they are calculated. However, some key factors include:
• Age of the business
• Director’s/owner’s experience
• Financial performance from Annual Accounts and Management Information
• The business/directors/owner’s external credit rating and past credit history
• Type of security (if any) offered and the valuation
• The industry sector