3. How do you assess the creditworthiness of Issuers?

Prior to being eligible to sign up into FinPAL’s Platform, we will run rigorous due diligence and credit assessment processes on each prospective Issuer, including anti-fraud checks, litigation search, credit screening, financial review and director review.

Our targeted Issuers mainly small and medium enterprises (“SMEs”) that offering goods and services to major retailers and hypermarkets, and mostly the existing customers from B2B Commerce (“B2BC”)’s ecosystem with established service records. In respect of the Issuers from B2BC’s ecosystem, FinPAL works closely with B2BC as a collaborative partner to assist in the initial screening and background checks. In supporting our credit assessment and scoring, we also employ the services of trusted Credit Bureau for independent and objective credit checks.

A rounded assessment through the credit scoring from trusted Credit Bureau, financial statement review and where relevant, enhanced analytics on the Issuer’s transactions within the B2BC’s , forms the basis of FinPAL’s scoring methodology.

Each of the Issuer will be risk-scored and assigned a risk-grading after the credit assessment. The risk grading also determines the applicable interest rate for each financing product. The Issuer will also be assigned credit limit, both at Issuer level and for each type of financing product, based on its financial standing, historical business volume and risk grading.

Each Issuer is subject to on-going monitoring for early detection of any credit deterioration. FinPAL has established a robust framework to support monitoring activities.