AXenS Evolving Credit Model
AXenS has implemented a holistic data-driven framework for credit assessment:
1. Transactional characteristics will play a key role, as AXenS leverages its blockchain technology to both map out the supply chain process, and ensue an event-based, data-driven credit structure, which can provide loan coverage for specific segments or the whole supply chain.
2. Non-financial: self-explanatory and some are subjective in nature (age of business, legal form, trade references and black list, years of residence at AXenS, etc.).
3. Facility: Loan characteristics (type – P&I payment, tenor – years, collateral coverage, collateral type, industry sector, etc.).
4. Financials: Statements and ratios. The credit model will be cognizant of the sector, industry and region when reviewing the relevant ratios.
The credit model will assign weightings to each of the four components as a function of relevancy and content. The final additive credit score will be normalized to be out of one hundred (100) points i.e. (0 to 100). Our blockchain technology, which allows us to leverage its look-through capacity, traceabilty and enhancement of the overall safety of the supply chain process, hence renders deal specifics as a critical component. This in turn enables AXenS to explore lending opportunities to deals where institutions with heavy reliance on traditional credit parameters may shy away from.