Pioneering SME risk assessments

How Wiserfunding emerged from groundbreaking SME research

In the dynamic realm of financial risk management, certain studies transcend academic insights to inspire groundbreaking ventures. Such is the tale of Wiserfunding, a journey ignited by a pivotal study that not only altered perspectives but revolutionised the landscape of SME risk assessment.

Our journey began with the influential groundwork laid by Prof Altman and Dr Sabato. Building upon their earlier research, a study unfolded, delving into the credit risk landscape of Small and Medium-sized Enterprises (SMEs). This exploration paved the way for Wiserfunding's mission to redefine SME risk assessment.

Analysing nearly 6 million SMEs in the UK, the study uncovered the necessity for tailored credit risk systems - distinct from those designed for large corporations. A significant revelation was the integration of non-financial data, potentially elevating prediction accuracy by up to 13%.

Significance of the study

The study underscored the challenges SMEs face with inconsistent financial reporting, emphasising the pivotal role of non-financial data in bolstering credit risk models. It also highlighted the profound impact of macroeconomic conditions, necessitating a nuanced approach to SME risk assessment.

Fueled by these findings, Wiserfunding emerged with a resolute mission — to provide a nuanced, comprehensive, accurate, and swift approach to SME credit risk assessment. Our commitment extended to incorporating both financial and non-financial data into our models, ensuring SMEs receive a fair and thorough analysis of their creditworthiness.

Our dedication to continuous innovation in SME risk assessment is unwavering. Our tools are meticulously designed not only to assess risk but also to unravel the unique story of each SME. We believe in empowering better financial decisions and recognising SMEs as the backbone of the global economy.

This groundbreaking study marked not just a research milestone but the spark that ignited our journey. As we evolve, our foundation remains anchored in these insightful findings.