Business Partners Limited
International SME lender Business Partners mandates EFL screening tool across its African footprint.
In the fast growing and crowded South African SME risk funding market, providing the most competitive risk-based pricing and terms, together with appropriate technical assistance, is the only way to outperform the competition. BPL therefore began seeking a robust and objective tool to assess entrepreneurs.
BPL integrated EFL’s credit scoring tool into its processes in order to enhance its existing due diligence of entrepreneurs across its South African footprint.
The EFL score was successful at risk differentiation: the bottom quintile of applicants were found to be more than twice as likely to non-perform than the top quintile. These results positively influenced the credit committee’s decisions to withdraw or fast-track deals. Based on the project’s success, BPL integrated the EFL assessment as a mandatory process in its due diligence across South Africa and in its 6 other African markets. Additionally, the SME fund is considering the role that the EFL score could play in deal pricing.Download Full Case Study
* Default reduction refers to the impact of removing the bottom two quintiles of EFL scorers from the borrowing population