Credit analysis process
- Analysis within 48 hours: this first step begins right after the company has indicated its VAT indentification number, the amount it wants to borrow and the duration of the loan requested. This analysis is based on financial data from external databases and from the companies' bank statements.
- Exhaustive analysis: the Credit team talks directly to the companies to understand their project and their situation in depth (activity, market, financial situation, etc.) in order to confirm the eligibility of the company.
- Rating of the company: the rating (from A+ to C) allows investors to easily understand the company's ability to repay and the level of risk of the project.
Analysis criteria and credit rating
- 60% of the rating is based on the financial analysis : yield, financial structure, debt level and repayment capacity.
- 20% of the rating is based on the company's environment: market trends and positioning analysis.
- 20% of the rating is based on the analysis of the company's team and management.
The October credit team uses a ratio to define the repayment capacity of a company, called FCCR (Fixed Charge Coverage Ratio). The project must have a FCCR equal or greater than 1 to be published on the platform. Learn more about the calculation and interpretation of the FCCR.
The rating (A+, A, B+, B, C) gives a proper understanding of the risk level of the project as assessed by the October credit committee. A project rated A is less risky than a project rated C and will be given a lower interest rate.
The interest rate is set for each project based on its rating and duration. As an indication, here is our current grid (by project notation and duration of the loan per month) and our detailed risk methodology.