Our Credit
Assessment Process

Our team of credit risk professionals conducts stringent due diligence and rigorous credit evaluation to curate quality opportunities for investors.

3 critical levers for credit evaluation

Pre-sanction Credit Risk Assessment

Deal
Structuring

Post Sanction Monitoring

Step 1: Evaluation Phase

Pre-sanction Credit Risk Assessment

Assessing Credibility

Assessment of management credibility
Adherence to legal, regulatory and statutory guidelines
Review of past conduct with lenders
Third-party verification
Corporate governance concerns

Business Model Validation

Key factors analysed:

Product and market evaluation
Competitive analysis
Financial metrics and margins
Business risks

Ability to Repay on Time

Sensitivity analysis and stress test of operating cash flows
Ability to infuse and raise money
Verification of cash reserves for working capital needs, debt obligations and equity fund flows

Step 2: Risk Identification and Mitigation Phase

Deal Structuring

During the process of structuring a potential investment opportunity, the credit risk team identifies the risk associated and designs appropriate mitigants to minimize those risks through the application of various covenants and security packages.

Few covenant examples that altGraaf may require borrowers to follow

Restrictions on repayment of other loans or corporate guarantees, until repaid to altGraaf.

Maintaining certain parameters such as revenue, costs, EBITDA, cash burn etc.

Adherence to sufficient funds in reserve account for servicing debt

Restrictions on change in capital structure/management, shareholding pattern, etc.

Preserving credit rating of the company and maintaining pre-determined debt-equity ratio

No fundamental change to company such as Name, Registered Office, Authorised Capital

Restrictions on repayment of other loans or corporate guarantees, until repaid to altGraaf.

Maintaining certain parameters such as revenue, costs, EBITDA, cash burn etc.

Adherence to sufficient funds in reserve account for servicing debt

Restrictions on change in capital structure/management, shareholding pattern, etc.

Preserving credit rating of the company and maintaining pre-determined debt-equity ratio

No fundamental change to company such as Name, Registered Office, Authorised Capital

Step 3: Early Stress Identification Phase

Post Sanction Monitoring

We periodically engage with the counterparty to assess their financial health, monitor covenants, and identify any early stress signals to take pre-emptive corrective actions.

Have more questions?

Check out our FAQs section to know more

All investment opportunities on altGraaf platform carry risk and investors should carefully evaluate whether the opportunity is suitable for them before making the investments. Please read the detailed risk factors available at https://www.altgraaf.com/risk-disclosure before making an investment.

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