FAQs
Advice and answers from the Grading Team
A business grading is a due diligence tool which measures the relative performance of a business to other businesses in its same size and industry classification.
This is in no way a credit rating as it does not calculate a probability of default or loss given default. The gradings can still be submitted with credit applications as a way to better unpack the business operations.
Within the pilot phase, the gradings are free, however, there will be a minimal fee application once the pilot phase is over. This fee will be paid over to SMEDAN and to no third party.
A non-financial grading excludes all financial calculations and is usually given to a business without financial statements. The financial grading includes this and is the complete grading. A non-financial grading can be converted to a financial grading once financial statements are eventually drawn up.
Non financial gradings can be completed a 1-5 days if all information has been provided to SMEDAN. Financial gradings can also be done in a similar time period but take longer if financial statements are not up to date.
Within the pilot phase we are testing the concept to further refine it. This ensures that the final product is of a very high standard!