Category: Banking and Technology
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Quantifying Qualitative Information in SME Lending
A major challenge in the risk assessment of SME borrowers is the largely unstructured and of qualitative nature of information. Financial Institutions find it difficult to approach the assessment this information which often includes only rudimentary and un-audited financial statements. Mass market retail loans are easier to evaluate because of the larger share of quantifiable…
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Tools to understand the business model of an SME
I wrote this article as a blog entry for Q-Lana, the company I co-founded and which introduces the concepts of knowledge-based lending for SME business. In this article, I focus on the steps to assess an SME’s business model, strengths and weaknesses as well as the business potential it might provide to a financial institution.…