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Valuatum System in Practice

VALUATUM CREDIT RISK IN PRACTICE

Valuatum Credit Risk platform can be used as a preliminary screening tool that allows potential loan applicants to do most of the work before even contacting lenders. Additionally, lenders can set customized financial and credit rating criteria for companies that apply for a loan. Compared to the common way to handle loan applications, Valuatum’s way saves lenders time and effort by providing enhanced process, access to extensive integrations with different data providers and automatic reporting tools. On top of all that, Valuatum’s way is completely transparent.

Faster process

Faster process

Valuatum’s way to process and filter loan applications saves valuable time, letting lenders to focus on the most important questions.

Extensive integrations

Extensive integrations

Nearly any local or global data provider can be integrated to Valuatum system

Automatic reports

Automatic reports

With Valuatum’s tools users can easily generate different kinds of pre-filled and customized reports.

Complete transparency

Complete transparency

Valuatum’s solution helps to build trust between all the credit value chain stakeholders.

LOAN PROCESS IN VALUATUM SYSTEM

Process chart presented below is just one example of how the loan application process could work, starting from identifying the need for funding to loan agreement. Process is fully customizable and process steps can be added or omitted based on the customer’s needs and desired level of automation.

LOAN APPLICANT DECIDES TO APPLY FOR A LOAN
LOAN APPLICANT DECIDES TO AP...
1
1
LENDER ENTERS VALUATUM SYSTEM
LENDER ENTERS VALUATUM SYSTEM
3A
3A
LOAN APPLICANT CONTACTS LENDER
LOAN APPLICANT CONTACTS LEND...
2
2
LOAN APPLICANT IS DIRECTED TO VALUATUM SYSTEM
LOAN APPLICANT IS DIRECTED T...
3B
3B
DATA
DATA
4
4
OUTSIDE DATA PROVIDER
OUTSIDE DATA PROVIDER
5A
5A
MANUAL DATA ENTRY
MANUAL DATA ENTRY
5B
5B
GENERATION OF FUTURE ESTIMATES
GENERATION OF FUTURE ESTIMAT...
6
6
REVIEW ESTIMATES
REVIEW ESTIMATES
7
7
MANUAL CORRECTIONS TO ESTIMATE FIGURES
MANUAL CORRECTIONS TO ESTIMA...
7B
7B
EVALUATE ELIGIBILITY
EVALUATE ELIGIBILITY
8
8
ELIGIBLE
ELIGIBLE
9A
9A
NOT ELIGIBLE
NOT ELIGIBLE
9B
9B
APPLY FOR A LOAN
APPLY FOR A LOAN
APPLY FOR A LOAN
APPLY FOR A LOAN
10
10
LENDER RECEIVES THE APPLICATION
LENDER RECEIVES THE APPLICAT...
LENDER RECEIVES THE APPLICATION
LENDER RECEIVES THE APPLICAT...
LENDER RECEIVES THE APPLICATION
LENDER RECEIVES THE APPLICAT...
11
11
LENDER EVALUATES APPLICATION AND COMPANY
LENDER EVALUATES APPLICATION...
12
12
LENDER APPROVES THE APPLICATION
LENDER APPROVES THE APPLICAT...
13A
13A
LENDER REJECTS APPLICATION
LENDER REJECTS APPLICATION
13B
13B
FEEDBACK TO LOAN APPLICANT
FEEDBACK TO LOAN APPLICANT
14B
14B
CASE IS PRESENTED TO INVESTORS
CASE IS PRESENTED TO INVESTO...
14A
14A
INVESTORS FOUND
INVESTORS FOUND
15A
15A
INVESTORS NOT FOUND
INVESTORS NOT FOUND
15B
15B
LOAN AGREEMENT
LOAN AGREEMENT

LEGEND

CUSTOMER ACTIONS BEFORE ENTERING VALUATUM SYSTEM

CUSTOMER INTERACTING WITH VALUATUM SYSTEM

ACTIONS TAKEN BY THE LENDER

VALUATUM SYSTEM INTERACTING WITH THE CUSTOMER OR DATA

LEGEND...

3A. The common way is that after customer contact, lender's analyst enters Valuatum system to do data input, generation of future estimates and analysis.

3A. The common way is that after...

3B. Optionally, it is possible to direct loan applicant straight from lender's website to Valuatum's system to input data and automatically generate or manually input future estimates.

3B. Optionally, it is possible to dir...

4-5. Company data is either fetched directly from an outside data provider or inputted into the system manually.

4-5. Company data is either fetched directly fro...

5A. Nearly any outside data provider can be integrated to Valuatum system as long as the data is available via an API. 

5A. Nearly any outside data provi...

5B. If outside data provider is not user, or if data for a specific company is not available, financial data can also by inputted manually using a simple data entry form.

5B. If outside data provider is not...

6. Future estimates can be generated automatically. If needed, they can be adjusted manually.

6. Future estimates can be generated...

7B. Estimates can be easily adjusted by manually inputting numbers or simply dragging from a graph.

7B. Estimates can be easily adjusted...
READ MORE ABOUT AUTOMATIC ESTIMATES
READ MORE ABOUT AUTOMATIC ESTIMATES

Automatic estimates are calculated based on historical data. Their main purpose is to provide a good starting point for manual inputs and adjustments. The main components in estimate generation are net sales growth -% and ebit-%: Net sales is smoothed over time so that at the end of the estimate period it reached a terminal level of 3 %. EBIT-% is estimated based on the assumption that ROA-% approaches the average cost of capital in the long run. 

Automatic estimates are calculated based on historical dat...
AUTOMATICALLY GENERATED ESTIMATES
AUTOMATICALLY GENERATED ESTIMATES

8. After saving the model, bankruptcy risk and credit rating can be seen instantly and used to evaluate the eligibility.

8. After saving the model, bankruptc...

9B. If not eligible, user can go back to manual input phase and simulate what should be improved.

9B. If not eligible, user can go bac...

10. If everything seems good, applicant proceeds to send the loan application.

10. If everything seems good, applic...

11-12. Lender receives a complete application including all necessary information, such as company financials, bankruptcy risk information and credit rating. This includes automatically generated reports that may be shared internally or easily forwarded to investors.

11-12. Lender receives a complete ap...

13B. If the application is rejected, there is very little time cost to the lender as the applicant has done most of the work.

13B. If the application is rejected,...

14B. It is possible to have automatic feedback sent to the applicant giving them information regarding why their application was rejected.

14B. It is possible to have automati...

14B. Based on the feedback, the applicant can again go back to simulate how they could improved their credit-worthiness in the future.

14B. Based on the feedback, the appl...

11 -> 14A.  Alternative route:

It is also possible to accept applications based on pre-determined criteria and automatically forward them to the investors. Level of customization and automation is up to the customer.
11 -> 14A.  Alternative route:...

13A-14A. Approval can trigger automatic emails to investors containing necessary information about the new investment oppostunity, including automatically generated reports and investment brochures.

13A-14A. Approval can trigger automatic emai...

13A-14A. One option is to grant investor clients a full access to Valuatum system allowing them to thoroughly analyze the cases and create own scenarios.

13A-14A. One option is to grant investor cli...
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