Loan grades are set based on both the borrower’s credit profile and the nature of the contract. 'A' grade loans represent the lowest risk while 'E' grade loans are the riskiest.
We use a total of 5 individual metrics that we use to provide additional insight into a borrower’s credit profile.
A) Financial Scale
Assessment of company’s size by turnover, based on last available historical financial statements.
+ - indicates if the company is profitable (+) or loss making (-)
Assessment of the company’s liquidity position, based on last available historical financial statements.
Assessment of the company’s leverage position using Net Debt / Equity ratio, based on last available financial statements.
D) Operational Performance
Assessment of the company’s operational performance (in prevailing market conditions) and commercial morality based on market feedback
E) Management Expertise
Assessment of the management’s depth of experience and track record.
Please note: Assessment metrics, loan grades and performance guidelines are provided for informational purposes only and they do not constitute investment advice. Such indicators rely heavily on historical financial statements made available to MARLO, and market feedback on the subject company. They should be used as a tool in assessing the subject and are not intended to be definitive judgments of the standing or worth of a company. The information provided should not be used as the sole basis or substitution for due diligence procedures in deciding whether or not engage with the subject company. MARLO cannot guarantee the accuracy of its assessment and undertakes no liability for any investment decisions made on the basis of such assessment.