In the project description we give information about the loan, project and company.
The analyst opinion is the assessment written by the credit analyst who analyzed the project. This section is standardized for Instant Projects.
Our borrowers relations and credit teams collect quantitative and qualitative data to present the company and its project.
October projects are divided into Standard Projects and Instant Projects, depending of the credit analysis performed to assess the projects. For each of these 2 categories, projects are presented following a clear template to enable lenders to compare them, regardless of their country of origins and sector.
All projects are visible on the platform at least 48 hours before they open for lending to give lenders time to analyze them.
In the first section of the project description, we present:
The project for which the company requests a loan.
The type of loan offered to the borrower
The annual interest rate of the project based on its rating and the maturity of the loan.
The guarantee scheme, for projects covered by French and Dutch State guarantee
The type of lenders who can lend to this project. Depending on the type, the project may be co-funded by retail and institutional lenders, or funded entirely by the October fund.
The automatic scoring model (Financial X-Ray or Transaction X-Ray) used to analyze the project (Instant Projects only).
In this section, we present you:
The activity of the company,
Its management team and its main clients,
Its principal characteristics (creation date, number of employees, location...),
Its key financial ratios, which is a summary of the Profit & Loss account for the last 3 years. It shows the company's ability to repay. For projects analyzed using automated transaction scoring model, called Transaction X-Ray, the key figures displayed on the project description are different as we only analyze bank transactions of the last 12 months.
The Analyst's Opinion
For standard projects, this assessment is written by the credit analyst who has studied the project and is approved by the credit committee of October. It is based mainly on the analysis of the company's financials, sector and management team. The FCCR and the financial ratios mentioned in the Analyst’s Opinion section are different from the ones presented in the table above because it is a forecast, taking into account the impact of the October loan on the repayment capacity of the company.
Besides, this section highlights the strengths and weaknesses of the company.
Instant projects are analyzed through one of our automatic scoring models, Financial X-Ray or Transaction X-Ray. The project description for these projects is standardized and contains less information, because this information is normally written by our financial analysts. On Instant projects, the role of analysts is limited to performing antifraud and compliance checks.
If the Instant project was analysed using Financial X-Ray, the project description will be written automatically using a template developed by October. If the Instant project was analysed using Transaction X-Ray, the project description is also standardised but some information will be written directly by the borrower.