Operations & Due Diligence [200]

The Operations & Due Diligence section incorporates several factors that evaluate a borrower's compliance risk, lending relationships, custody processes, and borrow history.

Credora captures the majority of this information as part of the onboarding process. Scoring is updated periodically as borrowers become more active on the Credora platform.

Category	Factor	Definition
Entity Due Diligence	Compliance Risk (20)	Compliance Risk categorizes the level of risk associated with Borrowers based on KYC Information. The calculation relies on a weighted average of inputs including the age of the entity, CPI Index, and Corruption Index.
	Regulated Onboarding (20)	Regulated Onboarding measures the number of regulated entities the Borrower has conducted business with.
	Risk Questionnaire (20)	Risk Questionnaire assesses the level of responses to diligence questionnaire on operational and trading risk mitigation practices.
	Custody (40)	Custody is defined as the infrastructure and controls the Borrower has in place to custody and transfer funds for regular business operations. Custody is scored across two sub-factors: Custody Risk Exposure, and Concentration Risk.
Borrow History	Borrow Time (60)	The length of Borrow History is defined as the number of months since the repayment of principal on the first undercollateralized loan.
	Lending Relationships (40)	Lending relationships are defined as the number of lenders that have extended undercollateralized or uncollateralized debt over the last six months.

The scoring curves for multiple factors are included below. On the y axis, the percentage of available points is displayed.

Regulated Onboarding

Borrow Time

Lending Relationships