Sum2 has formally released SMB 360, risk assessment modules for small and mid-sized businesses (SMBs)
The SMB 360 guides small business owners and mid-size company managers with in-depth self assessment tools to score risk factors unique to their business model. The SMB 360's qualitative risk assessment framework scores and analyses classes of risk factors and determines preparedness for raising finance from banks and aims to minimise cost of capital from lending institutions.
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Sum2 designed SMB 360 to assist banks to develop business within the small, mid size enterprise market. James McCallum, President of Sum2, commented, "The release of SMB 360 is most timely considering the recent volatility in the credit markets and it's potential adverse affect on SMBs. The SMB 360 will help SMBs to understand and prepare for the emerging stringent credit scoring and decision metrics used by regulated and unregulated lending institutions."
SMB 360 sets out to detail the main business readiness, risk factors and management practices that lenders generally look for when assessing and rating SMBs. It looks to provide SMBs with awareness of what is regarded by lenders as sound risk management and corporate governance excellence in SMBs and to assist SMBs with preparing to meet the likely business information requirements of banks, private equity, investors, regulators and investment banking institutions.
The product should, says its author, mitigate credit risk exposures as it demands a higher level of creditor transparency and offers documented evidence that the SMB is dedicated to sound corporate governance and effective risk management practices.