Everything you need in a credit review
Identify. Estimate. Communicate.
Benefits
How It Works
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A process built for impact
Spread Financial Statements
Enter 11 standardized financial lines items from the customers balance sheet and income statement.
Automated Analysis
Our engine applies industry-specific benchmarking, ratio analysis, and credit scoring in real-time.
Credit Risk Output
Get a system-generated credit rating linked to an estimated 12-month probability of default (PD).
Decisioning & Communication
If the customer meets your configured risk appetite and policy thresholds, then auto-approve.
If not, you have the ability to add commentary on the customers key strengths and weaknesses, offering actionable recommendations and clear guidance on managing the identified risk(s).
What Sets Us Apart
Credit Risk Framework
A Credit Tale As Old As Time
You know counterparty's operating....
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In higher risk industries
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With fewer years in business
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With lower revenue and margins versus industry peers
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With higher levels of leverage versus industry peers
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With minimal liquidity
...carry a higher probability of default. Now see it in action!
Transparent and intuitive credit ratings
The scores and weights 5 categories: Industry Risk, Years in Business, Peer Competition, Financial Risk, and Liquidity. The output is a 12-month probability of default.
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Peer Benchmarking
The "marginal producer" framework highlights less efficient industry peers who are first to struggle in tough times due to high costs and low margins.
Peer benchmarking forms the methodology, scoring credit risk categories from 1 (lowest risk, top 20%) to 5 (highest risk, bottom 20%) based on industry comparisons.
Credit Reports
Eliminate time-consuming and inconsistent credit reviews with user-friendly, research-backed reports that highlight key strengths and weaknesses.
Optimize Time and Financial Position
Risk and reward are linked. Credit ratings help estimate risk relative to potential profit.
Automate the approval process for lower-risk customers and apply due diligence for riskier counterparties.
Optimize credit risk. Minimize your stress.
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Can risk thresholds be customized to align with our internal risk policies?Yes. CreditKernel allows you to configure risk thresholds by a variety of categories, ensuring alignment with your internal policies.
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What types of risks does your model assess?Our framework follows the fundamental truths of counterparty credit risk - Counterparty's operating.... In higher risk industries With fewer years in business With lower revenue and margins versus industry peers With higher levels of leverage versus industry peers With minimal liquidity ...carry a higher probability of default. As such, our model assess the following counterparty credit risks: Industry Risk Business Longevity Peer Competition Financial Risk Liquidity
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What industries do you specialize in, and how robust is your benchmarking data?CreditKernel provides benchmarking analysis for 68 industries. Each industry has a minimum of 10 peer counterparties.
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What data inputs are required?Users enter the counterparty's Standard Industry Classification (SIC) Code and spread a minimum of 11 financial statement line items.
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What is the average turnaround time for generating credit scores and reports?According to McKinsey & Company, a standard credit review takes 4 hours of an analysts time. Pain points include inputting financial statements, gathering industry and benchmark data, interpreting credit risk, preparing credit reviews, and aligning on risk appetite. More complex reviews can take up to 12 hours. Our credit reviews take less than 10 minutes.
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Is there a free trial period?Yes, we offer and welcome a free trial period. Let’s setup a quick call to ensure you get the most out of CreditKernel. Typically, after 5-10 credit reviews teams understand the solution.
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What level of training or support do you offer for onboarding and ongoing use?Onboarding is typically less than 5 days. Our team is here for you before, during, and after implementation. The platform does not require IT support nor do we assign a Project Team or Subject Matter Experts. For ongoing support, users have access to our “Credit in 5” videos. Each video is less than 5 minutes to cover topics such as rating model methodology, workflow, and each of the five credit assessment categories.
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How secure is our data?All data stored is encrypted at rest and in transit, following industry best practices. All data disks are encrypted at rest using Azure Storage Encryption, which uses server-side encryption to protect your data. Data in Azure managed disks is encrypted using 256-bit AES encryption. Data in transit is encrypted with Transport Layer Security (TLS) 1.3. This is to ensure privacy, authentication, and data integrity.