Analysis of credit risk

Financing request analysis process

  • 1. Analysis within 48h

    The company communicates its SIREN number, the amount and the term of the loan. The analysis is based on financial data from external databases (Scores & Decisions) and the banking companies (FIBEN) file.

  • 2. In-Depth Analysis

    The credit team exchanges directly with the company to clearly understand its project and status (activity, market, financial situation, etc) in order to confirm the eligibility of the company.

  • 3. Rating (A+, A, B+, B or C)

    This rating allows lenders to easily understand the repayment ability of the company and the level of risk of the project to be financed.

Lendix rating criteria

Financial performance

Level of profitability, capital structure profile, level of debt and company's ability to repay

Company's market

Trend of the company's market and its positioning

Management team

Governance of the company and its history

Calculation of a company's repayment capacity or FCCR

The FCCR corresponds to the operating profit net of corporate tax and self-funded investments divided by financial expenses and the total debt service (annual principal and interest payments). The higher the FCCR, the more significant the safety margin.

Example: a 1.5 FCCR means the company has a cushion of 50% against its repayment capacity.

FCCR < 1FCCR = 1FCCR > 1

Insufficient profitability to cover debt repayment charges.

Profitability just sufficient to cover debt repayment charges.

Profitability sufficient to cover debt repayment charges with a safety cushion.

Project declined

Presentation to the Credit Committee will be considered depending on the history and management of the company and contextual elements.*

Presentation to the Credit Committee will be considered taking into account contextual elements.**

Presentation to the Credit Committee

*Example: The operational organisation of a group (cash flows towards the parent company as part of cash pooling, centralised billing system with a production company that manufactures on behalf of the group and billing done by a distribution company).

**Example: The financial organisation of a group (debts recorded in a holding company and not at the level of our borrower) or intrinsic level of profitability of the group.

Lendix rating categories

A+
A
B+
B
C
2.5%
9.9%

The higher the rating, the lower the loan interest rate

Warning

Regardless of the project rating, there is always a risk of capital loss. It is thus fundamental to diversify your lending on a large number of projects. Expert opinion is given for information by the Lendix expert loan team on the basis of information provided by the project owner and information from our databases (scores & decisions, corporates bank file, etc.). This notice only constitutes an element in decision making for a lender to participate in funding of a project.