A project feasibility study on the establishment of a credit rating agency for small and medium enterprises (SMEs)

• Main Authors: Amoranto, Nicoline Victoria P., Castro, Bernard V., Dumaual, Michael A., Punzalan, Robert Allen F.
• Format: text
• Language: English
• Published: Animo Repository 1998
• Subjects: Financial institution; Business enterprises; Commercial credit; Banks and banking; Accounts receivable; Loans; Commercial agents
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/16470
• Institution: De La Salle University

As the sole provider of Small and Medium Enterprises (SMEs) credit rating in the country, First SMEs Credit Link, Inc. aims to provide unbiased and relevant ratings to be used by financial institutions and SMEs alike in their credit risk assessments. As a credit information agency, to uphold credibility as a measure of quality to our services. Through a sound credit system, national development would be achieved. The results of the survey in Metro Manila bolstered our initial expectation. The agency's primary and secondary services are expected to be well received by the Private Development Banks (PDBs) and SMEs respectively. Seven out of nine PDB's would like to avail of the Credit Rating Report. The survey for Company Background Report, Financial Analysis and Property Appraisal Reports resulted in 73 percent, 75 percent and 83 percent level of acceptance among SMEs respectively. The results are very clear: First SMEs Credit Link, Inc. is acceptable to its target market. The process of services is based from existing procedures from the credit industry. This industry includes banks, private credit information agencies and CIBI. Functions of the employees are clearly defined. The process flow is organized in order to provide as a map for quality services. The financial aspect of the study proves that the credit information and ratings business for SMEs is a good project that is worth the while for implementation. Although the first two years of operations resulted in a loss, the agency managed to realize sizeable amounts of income in the last three years. This is expected to further grow in the future. In the future, First SMEs Credit Link, Inc. hopes to expand its target market not only in Metro Manila but also in other parts of the country. By that time, the proposed agency has already established its name in the credit information and ratings industry as a result of its continued improvement and customer satisfaction. The whole process of this feasibility study only proves one thing: that the