Credit Rating for Under-Banked SMEs

Unlike their contemporaries in developed nations, Small Medium Enterprises (SMEs) in developing countries are at a disadvantage due to, among other things, a lack of access to a centralized credit bureau to maintain and compile credit worthiness scores. This limits communication about credit worthiness in the greater market and this hampers the SMEs overall access to credit.

Though mobile and e-commerce technologies have allowed SMEs in emerging economies more opportunity than ever reach customers around the world and catalyze activity, obtaining business loans from traditional lenders is still a considerable challenge. This challenge results in many developing country SMEs being under-banked. Business loans allow SMEs to hire more employees, buy bulk materials at a reduced cost, and facilitate growth in new ways to help give SMEs a more competitive edge. But without a way to determine a business’ repayment likelihood and no way to track and score universal business level payment history, banks will continue to be reluctant to give out loans.

CreditBPO can help bridge the gap between SMEs, banks and institutional lenders by providing an objective credit rating based on strategic SME profiling based on financial technology. CreditBPO’s proprietary model evaluates a business's current conditions, financial performance, and management quality. The resulting credit rating can be used by the business to increase its chances of obtaining business loans and funding from the formal sector at better rates.

Aside from loan applications, SME’s CreditBPO Rating Report can be used by corporates and government agencies in assessing reliability as a supplier, service provider, customer or partner. The CreditBPO Rating Solution© provides a win-win solution and peace of mind for both sides of any business transaction. Most importantly, each report generates actionable recommendations specific to the SME’s business (a hybrid robo-advisory). This constitutes a roadmap to improving SME credit worthiness while benchmarking business performance against others in the industry. This will help all SMEs compete more effectively from a higher level so these enterprises can thrive in the world's dynamic e-commerce environment.

Several banks have included the CreditBPO Rating Report© in their loan requirements checklist to quicken loan evaluation processes. Recognizing that innovation can no longer be ignored, CreditBPO was recently tapped to be a private sector partner of the Bangko Sentral's National Strategy for Financial Inclusion. It is also a private sector partner of the DTI’s nationwide digital development program for SMEs.

So be part of the evolution of progressive SMEs. Take advantage of affordable financial technology that will bring your business to greater heights and impressive growth. Get your SME’s credit rating report at www.CreditBPO.com. It will be your invaluable advisor.