Rawafid effectively employs its team's finance expertise with innovative ideas and advanced technology to bring forth SME financing solutions and investment opportunities for its customers.
How exactly does Rawafid analyse the risk associated with each invoice financing opportunity, you may wonder as an investor.
The only businesses that land on the Rawafid platform as investment opportunities are the ones that pass our rigorous checking process.
We take in consideration (including but not limited to) the following aspects in order to assess the borrower's ability and willingness to repay:
Rawafid's team harnesses the efficiency of a proprietary credit scoring database that collates all data points that automatically produce a score that is proportionally weighted to reflect the value of the inputs.
The data points can be divided into three major categories:
These data points are then used to produce the final credit report, on the basis of which Rawafid applies a risk band or risk rating with each funding opportunity. Moreover, a mandatory site visit is also done by a member of our team who interviews the management and observes the site for further satisfaction.
We serve a wide segment of SMEs, and assign a risk rating (A,B,C, or D) that reflects a combination of the SME’s following strengths:
All historical records collected from local credit bureaus mala’a and CBO.
Audit Financial Records from regularity institutions and Bank Statements
Personal credit history and other maturity strength such as experience and personal wealth.
Class of buyer and the historical records of invoices for the same buyer.
Following are the risk bands under which we categorize each investment opportunity and the factors we consider for it:
The competent finance team at Rawafid evaluates the credentials of each business before finalizing a user agreement. As a buyer-centric entity, Rawafid adheres to a set of compliance practices and mechanisms to ensure that only authentic listings are featured on the platform for funding purposes. Nonetheless, it is imperative for investors to understand that they are lending to SMEs which maybe at the early-stages of establishing their presence in the industry. Therefore, the level of risk associated with such investments is higher which could also result in a potential loss and delays in repayment. It is necessary to understand that you could lose your money.