Credit risk assessment policy

Before a loan is offered, the platform assesses the credit risk of the project and its owner (Regulation (EU) 2020/1503, Art. 4(4); Delegated Regulation (EU) 2024/358).

1. Checks on the project owner

Each must pass, or the loan is not offered:

• the owner, its managers and beneficial owners have no criminal record for infringements of commercial, insolvency, financial services, anti-money laundering, fraud or professional liability rules;
• the owner is not established in a non-cooperative jurisdiction or a high-risk third country under the anti-money laundering rules;
• the owner and its group have never been more than 90 days late on the platform;
• the owner has no tax debt and no open payment incidents.

The evidence of each check (certificates, register extracts, the lists consulted) is kept for five years.

2. Factors

Each factor is scored from 1 (best) to 5 (worst); the weighted average is the loan's score.

Factor	What is looked at	Weight
Profitability	debt service coverage (DSCR)	2
Cash flow	income and cash flow over the last two years and the projections	2
Indebtedness	liabilities over tangible net worth; other debts	1
Credit history	payment record with banks, suppliers and the state	1
Collateral	loan-to-value, the valuation and liquidity of the collateral, other guarantees	2
Macroeconomic	country, region and sector	1
Competition	position in the market	1
Experience	the owner's and the team's experience in the sector	1
Reputation	public information on the owner and its managers	1

When the financial statements are not audited, the assessment says who prepared or certified them, and the campaign page and the KIIS say so.

3. Scale

Category	Score up to	Probability of default within 12 months	Offered
A	1.8	2 %	yes
B	2.6	4 %	yes
C	3.4	6 %	yes
D	4.2	10 %	no
E	5.0	20 %	no

The probability is the platform's own estimate (the expected default rate). Default means a payment more than 90 days past due, or an owner unlikely to pay without the collateral being enforced. The assessor may assign a category other than the one the score suggests only with a written reason.

4. Who decides

One staff member prepares the assessment and a second one approves it. The category, its probability of default and the date of the assessment are shown on the campaign page and in the KIIS.

5. Reassessment

The loan is assessed again when a payment is late, when it defaults, when its terms change, and at least once a year while it runs. If the category of an open offer changes, the KIIS is amended and the investors get a new reflection period.

6. Expected and actual default rates

Every year the platform publishes the default rates of the last 36 months by the method of Delegated Regulation (EU) 2022/2115 and compares, on the Statistics page, the expected rate of each category with the actual one.