Monestro is pleased to collaborate with Wiserfunding, an external report generating tool provider, to give its client access to more information they need in order to invest their money. As Monestro is always striving to strengthen its trust with its clients, this is just another step towards it.
What is Wiserfunding?
Based in London, Wiserfunding is a FinTech company that specializes in assessing the credit risk of small and medium-sized enterprises (SMEs). Their online platform enables businesses that require obtaining finance or lenders. Also, provides reports to insurers looking to assess the risk of business applicants to get more accurate data in order to make better decisions quicker than before.
Dr. Edward Altman and Dr. Gabriele Sabato started Wiserfunding to put in practice everything they had learnt in many years of research and work on SMEs. Wiserfunding enables bank and non-bank lenders, investors and corporates to better allocate funds to SMEs, helping them to build their assets, lend money in a risk-managed way, and reduce the cost of acquiring new suppliers or customers. By accessing more comprehensive data to show which companies will likely generate long term value, financial markets can help SMEs to grow and prosper. Building on the Z-Score model, which has stood as the industry standard for 50 years, Wiserfunding uses artificial intelligence to assess intangible factors such as corporate governance, management capacity and macroeconomic outlook.
How will it work for Monestro?
Monestro has a good number of LOs on its platform. They are often asked by its investors “How to choose the best LO?” Well… the answer to this question is not as simple as the question. Every investor is different. They can vary based on various factors such as
- Investing amount
- Willingness to take risks
- Duration of investing (Short or Long)
- Desirable outcomes
Hence, the choice of LO varies.
To make your job easier, Monestro has collaborated with Wiserfunding, which will provide, to their registered investors, the monthly and annual statistics of their LOs. This will make their job 10x easier.
How does it contribute to my trust with Monestro?
Wiserfunding is an external tool which is controlled by the Artificial Intelligence of a third party. The data will be provided via Monestro secured space after being converted into interpretable reports that can be accessible and understandable for a common investor. It also increases the level of transparency with the investors.
Following are the types of information that all Monestro’s registered investors can get access to:
In this section, you will be able to see the general information about the company such as: company name, industry sector, incorporation date, country of operations, currency operating with, codes etc.
2. Financial Overview
This section provides the financial figures for the last 5 years. In case the report of the last year is unavailable, the figures will be provided for the previous 5 years and the trendline.
3. Risk Metrics
This is the part you need to pay attention to. The thing to be noted here is that the Z-score is a formula to determine if the company is heading towards bankruptcy. It is going to look like this:
4. Probability of default
This term is self-explanatory. This is the number in percentage % that how likely is it for the company to get the default. This is the total number of assets of the company that may go default.
5. Bond Rating Equivalent
For those interested in bonds, this information should be your favourite. This portion of the report provides you with a comparison of investment opportunities with bonds. Here is an example of what it may look like:
This part focuses on two main features:
- Reliability: How much is the company reliable. The assessment is done on the past and current trends of the company.
- Risk outlook: These are the figures of the risk factor based on financial analysis.
7. Corporate Governess
This is the information about the company’s C-level management, board of directors and shareholders.
This part gives you all the information about the structure of the company. For example, the parent company, its subsidiaries and operating companies.
9. Legal Events
This gives you the background check and the legal position of the company. In other words, if a company has any legal matters with the court or semi-legal events, it’s mentioned here. Please note that this information is extracted from external sources and not from the company.
This potion covers 2 main parts:
- Activities: This information is mostly taken from the website and is analyzed where and how the company operates.
- Governance: Politically exposed person check (from the corporate governance)
Based on all the information above, you must have an idea of how transparent Monestro wants to keep its operations with its clients and investors. The reports are accessible for login investor in the Loan Originators page.