Reference Use Cases

Workflow

2 - Outreach Communications

This step entails launching an awareness campaign about a new loan program initiative targeting SMEs. Information on the program, which SMEs are eligible and processes to obtain the credit loan are disseminated through all sources of media - television, radio, SMS, email, and social media platforms.

Targeted outreach can also be done via existing databases and registries of operating SMEs in the country. These SMEs should be encouraged to digitize all their internal and business-to-business (B2B) processes on their business activities and cash flows - this will facilitate the automation of credit-risk measurement and monitoring that lenders value.

Workflows

Client communication to facilitate clear information and communication on processes to apply for credit and loans targeting SMEs.
Client education for educating target users/audience on the objective(s), benefit(s), process, guideline etc.
Content management to disseminate relevant educational and promotional content that local loan officers can use at banks, financing institutions etc.

Building Blocks

Messaging

3 - Registration

Registration is the process of collecting information on potential SMEs seeking to apply for financing and go through a credit approval process. This is in order to gather all the necessary information needed for assessment of their needs and conditions. Depending on the specific country context, registration may occur by leveraging an existing business registry database - national SME business registry to acquire all information the lending financial institution requires to assess a loan application. During this process, the business entity's information is collected (type of enterprise, business model, financial documents, collateral etc.) as a prerequisite in assessing their eligibility for a particular loan/ financing scheme.

Workflows

Data Collection and Reporting for capturing data of SME business entities.
Identification and Registration to be able to identify the SMEs.
Client Case Management for creating business entity user records.

Building Blocks

E-Signature

GIS

4 - Data Verification and Validation

Data verification and validation should be coordinated with all relevant authorities and participating lending financial institutions. The SME registration data that is submitted can be checked against other credit institutions and government databases (e.g. chamber of commerce business registry, etc.) to fill in any missing gaps, verify and validate collected information, including authentication of all records.

Workflows

Client Case Management for storing and reviewing identification, registration, and SMEs credit scores and financial information.
Data Analysis and Business Intelligence for cross-referencing and verifying records across multiple registry sources, and reconciling gaps / overlaps.

Building Blocks

E-Signature

5 - Eligibility Determination

To be eligible for the SME credit guarantee scheme or any public funding scheme, SMEs have to fulfil specific conditions. Eligibility conditions must be very clear and accessible. Certain countries even include questionnaires that interested parties refer to/ have to complete in order to find out if they are eligible for a loan credit support scheme. These conditions could include requirements on where the business is established, number of employees, years the business has been in operation, annual revenue and balance sheets, revenue thresholds, etc.

For example, in the case of a government credit guarantee funding scheme - where a government body acts as guarantor for eligible SMEs, a list of the banks and funders that have agreed to this funding scheme with the government body, is available on websites and relevant social media platforms. A special dedicated web portal can be made available for SMEs with all relevant information on the eligibility conditions and application processes for each participating funder.

Workflows

Content management to disseminate information of eligibility criteria.
Identification and Registration to identify eligible SMEs that meet the criteria.
Client Case Management for storing specific data and tracking SMEs interested in applying for loans as well as those eligible.

Building Blocks

Messaging

6 - Application

This step entails the application process for SMES to apply for a loan. SMEs can be required to complete a form online and submit all required documents pertaining to the financial situation of their business (turnover, assets, business activity, collateral information, credit information, outstanding loans etc). In most cases, the representative from the SME will have to schedule a consultation and interview with a loan officer at the financial institution to discuss their loan application. In certain countries, banks have an obligation to provide SMEs with a standardised credit report and with their credit rating, based on a common methodology.

For example, with countries implementing the SME Credit Guarantee scheme for SMEs, the eligible SMEs does not apply directly for the SME Credit Guarantee scheme via the government body guarantor. Instead, the SMEs directly applies for a loan from one of the participating banks or other funders collaborating on this scheme. It is the bank that reviews the SMEs application and then coordinates with the national body acting as the guarantor.

Workflows

Client Case Management to track, review and process all submitted loan documents. Also, to respond to any inquiries and provide updates on the loan application decision.
Data Analysis and Business Intelligence to analyze all submitted data and ensure they meet the eligibility criteria.

Building Blocks

Messaging

7 - Loan Issuance

Loan issuance takes place once the submitted loan application has been reviewed and approved. If the application is approved, both parties sign a contract that outlines the details of the agreement. First, a notification is sent to the applicant informing them that their loan has been granted with the contract that provides information on loan agreeement, collateral details, date when amount is available in the SME borrower's account, loan interest rate, and the length of time before repayment is required. The terms of the loan has to be agreed by each party before any money or is disbursed.

Workflows

Data Collection and Reporting for capturing and tracking all approved loans and informing all relevant authorities of approval decision.
Client Case Management to communicate approval decision to the applicant and coordinate loan allocation as well as payment plan and processes.

Building Blocks