Ten Strategies Utilized by Leading Creditors to Limit SME Credit Risk

• Partner with local banks who are willing to share credit information
• Leverage local distributor and dealer relationships who can make qualitative assessments
• Build loan size as you build customer relationships over time
• Track product using technology like GPS devices
• Utilize informal peer networks to gain intelligence on payment histories
• Assist willing customers with basic accounting techniques to enhance transparency
• Build internal credit scores for SME customers
• Finance SMEs like individual consumers, based on personal financial history of proprietors
• Collateralize corporate or personal assets
• Shift credit risk to a third party financier

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