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How do we manage risk?

Our credit risk assessment and collection team.

Melissa avatar
Written by Melissa
Updated over a week ago

In Funding Societies, only established businesses who have passed through our rigorous credit assessment can finance through Funding Societies. However, it is important to always review and view the factsheet of each investment opportunity before investing. 

Rigorous Assessment

  • A full credit assessment and underwriting is performed for each and every note issued by Funding Societies. A few different credit rating agencies are also used to evaluate each note. This is to ensure that only creditworthy businesses are approved. 

  • A standard set of company and financial documents for further assessment of the financial performance of the company will be requested before verifying the credit bureau reports of all directors as well as check for credit litigation history against the company.

  • If the verification checks out, a site visit to the Issuer’s business premises will be scheduled where we assess their willingness and capability to make payments. 

Collections Team

  • We have our in-house collection team who pursues every single late or defaulted note. Our collections team will work closely with the issuers on restructuring the note with a new payment schedule if possible and exhaust every legal process available, including initiating debt collection process by engaging debt collection agency.

  • The team has a range of methods in place to recover as much as possible to protect the best interest of our investors. 

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