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