Risk Assessment

There are 3 steps to assessing a borrower before they are approved with Bigstone.

Part A: Can the borrower afford to pay back the loan?

Using good old fashioned analysis, and a proprietary process, we can quickly answer these questions for each borrower:

  • Is cashflow sufficient to pay back the loan?
  • Is the business stable relative to its peers, and other industries?
  • If the business is growing, how will the borrower meet its growing capital needs?
  • Does the Bigstone loan lower the risk of the company becoming over-extended (does Debt consolidation substantially reduces business costs)?

These four questions create a set of metrics we use to describe the loan request relative to our cashflow projections.

Part B: Will investors put funds on this loan?

  • How good is the credit behaviour of the directors?  
  • What is the payments and credit history of the business?
  • How likely is it that loan will be repaid given historical business financial performance?

These three questions create a risk score that allows us to understand how risky the business is (probability of default).  We can instantaneously compare each business to the performance of thousands of businesses to create a perspective on risk.  

Only borrowers we think are creditworthy by clearing both hurdles, move forward.

Part C: Are both borrower and lender comfortable?

Together these two first parts often create a set of questions which we put directly to the owners/directors of the business in a short telephone call.  

This allows the owner of the business to put their loan request into context, and enable them to describe the need for the loan, and our team to qualify outstanding questions.

Once both parties are comfortable, contract is organised and the loan is listed!

Interested in knowing more?

We are more than happy to organise a quick session to take you through the details.

If you believe you are an eligible investor, then call us on 1800 244 786.

Yes. Unlike many other ‘peer-to-peer’ marketplaces, Bigstone empowers you to pick and choose, in real-time, the loan requests that you want to allocate your funds to. You can filter by risk grade, interest rate, loan term, loan amount, and other criteria. This gives you flexibility in your investment. We believe that helping you to make your own decisions is the best way to get you the best returns and to get borrowers the best rates.

Register Now

Yes, eligible investors can create an account, upload required documentation and access the marketplace online. For those who don’t yet meet the eligibility criteria, we recommend you register your interest by staying up to date with the Bigstone blog.


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