Credit analysis for SMEs differs significantly from that of large and mid-sized corporations. Within the SME sector, the assessment criteria for micro-SMEs (MSMEs) are distinct from those applied to small and medium enterprises (SMEs).

For MSMEs, which often consist of small businesses or individuals running small-scale operations, the creditworthiness is more closely tied to the reputation of the business owner than to the company’s cash flow. Financial statements are frequently unavailable or incomplete, so the focus shifts to validating the legitimacy of the business. This involves verifying the existence of the business, performing KYC checks, analyzing bank statements, and reviewing individual credit scores, among other factors. As a result, the credit assessment process relies more heavily on a scoring model rather than traditional financial statement analysis.

For small SMEs, financial statements may be available but are often unreliable, so a significant portion of the credit evaluation focuses on verifying the business owner’s credentials, examining business operations, assessing collateral, and analyzing bank statements. For medium-sized SMEs, which are larger and have reached a certain scale, their financial statements, though not always fully reliable—can still be considered. In addition to assessing the owner’s credentials and bank statements, more attention is given to understanding business operations. Therefore, financial performance analysis and projections are essential for this segment.

KreditAccel provides tailored solutions for both micro-SMEs and small & medium enterprises (SMEs). The platform’s Loan Origination System (LOS) is enhanced with a mobile app for field verification (FI) and a white-label mobile app for customer onboarding. If an organization already has a mobile app, it can be seamlessly integrated with KreditAccel’s platform.

The offerings include:

1. Loan Origination System (LOS): Separate templates for (i) small & medium enterprises and (ii) micro-SMEs. It covers most of the LOS features as stated above with additional capabilities for digitizing bank statement analysis.
2. Loan Management System (LMS): A digital solution to streamline loan management, including disbursement and post-disbursement monitoring and control. In addition to capabilities as provided for LMS for large corporates, LMS for SMEs can be directly integrated with a core banking system (CBS) for direct disbursement.