How we assess a loan
We look at how the business makes money, its accounts and cash flow, its market and what could go wrong.
What we look at
The business
- Its model
- Its results
- Its competitors
- How it runs
The market
- Where it is heading
- Who else is in it
The money
- Cash flow
- The capital it needs
- Whether it can meet its obligations
The risks
- Financial
- Operational
- Market
The outlook
- Whether the business can develop and strengthen its position
Then we decide.
Before, at and after the decision
Before
- We learn the business.
- We assess its financial and operational risks.
At
- We decide on each loan under our lending policy.
- We spread our lending across borrowers where we can.
After
- We follow how each loan performs.
Where we draw the line
To be confirmedLoan sizes, sectors, what we turn down, who decides, whether the lending policy is written down and whether we spread lending across borrowers.
An assessment reduces risk and does not remove it.