OUR MODELS

Sophisticated
models, unrivalled
insights

Sophisticated models, unrivalled insights

Harnessing 20+ years’ SME data for precise, predictive risk modelling

Harnessing 20+ years’ SME data for precise, predictive risk modelling

OUR MODELS

Sophisticated
models, unrivalled
insights

Harnessing 20+ years’ SME data for precise, predictive risk modelling

Built on a
foundation
of expertise
and data

Built on a foundation of expertise and data

Based on the pioneering work of our co-founder Professor Ed Altman, and our extensive SME data panel, our models incorporate data for more than 30 million SMEs worldwide with a turnover between €1m and €150m.

Using annual data from 1998-2022, more than 2 full economic cycles, our models are as robust as they are detailed.

Detailed risk assessments tailored for SMEs

Based on a core of around 320 million company year observations, our data panel incorporates both financial and non-financial variables, excluding inactive companies from the database.

Our system adjusts the contribution of each module to the final risk score depending on the quantity of reliable data collected. This allows the models to maximise the value of the available data and eliminate bias as the variables are always the same, but give appropriate weighting to the modules.

Extensive testing has proved the strength of our models for firms with turnover between £300k and £800m in all sectors and regions.

Unlike the standard one-size-fits-all approach, our models can be customised to a client’s unique requirements. Framed around the individual inputs and desired outputs, our bespoke models help clients unlock targeted insights that directly align with their own risk criteria and business objectives.

Each sector-specific SME Z model consists of 3 modules

Module 1

Module 1 is focused on financial data – the most important driver of the final score.

This module is estimated using a stepwise variable selection process. The selection process accounts for interpretability, adequate balance of factor groups represented and statistical significance.

Module 2

Module 2 captures non-financial information such as management experience, legal events, corporate structure, social media engagement and news coverage.

Module 3

Module 3 covers macro-economic data to ensure the current state of the economy is adequately reflected. This also enables us to provide forward-looking default risk assessments.

Understanding our models’ mechanics

Our technology in action

Transforming global financial analysis

“We get data in 15 seconds that banks and credit bureaus don’t, and the integration with our credit analytics enables us to make good, fast lending decisions”

PLAYTER

“Wiserfunding gives us a complete and uniform tool for analysis that should be the industry standard. It blows away anything I’ve seen for credit reporting for SMEs.”

Lenderwize

“Wiserfunding worked with us to build tailored LGD risk models so our risk function could easily become compliant with new FCA regulations.”

Assetz Capital

Advance your risk analysis
with our proven models