The Bureau's objective is to create a sound credit culture and good payment behavior amongst the SMEs in the country, which will lead to better access to financing from financiers and other credit grantors.
Bridging The Information Gap
The Bureau bridges the current perceived information gap and addresses the financing issues related to inadequate financial track record involving SMEs. This is possible as we provide financiers with easy access to timely, accurate and reliable credit information and ratings on SMEs. The availability of this information will in turn, facilitate faster credit evaluations and ultimately increase and speed up financing activities. We also seek to increase the level of trust between SMEs and lenders, promoting greater transparency and competition between lenders.
One Stop Centre For Reliable Credit Information
As a centralized credit information database, The Bureau consolidates data from various reliable and credible sources. As a One Stop Centre, we provide financial institutions and other credit grantors reliable credit information and ratings on SMEs. This allows them to make more informed lending decisions and encourage greater efficiency in loan processing. Thus, collateral requirements can then be streamlined and default rates can be further reduced, resulting in more affordable loans in the long-run.
Build, Maintain And Enhance Credit Standing
The Bureau assists SMEs to build, maintain and enhance their financial track record, enabling them to use their positive credit history as "collateral" to access loans at more competitive terms from potential financiers. The Bureau empowers SMEs to build their credit reputation from a wide range of transaction behaviors. These include transactions with other credit grantors, such as suppliers, credit & leasing companies, telcos and utility providers. The record of transactional behavior is expected to provide more comprehensive information on SMEs, especially for new start-ups that are accessing financing from banking sector for the first time.
Provide Tools For Self Check
SMEs should also use the services provided by The Bureau to better understand the credit evaluation processes and their potential access to credit. The Bureau's credit report and ratings identifies critical areas that need improvement to improve SMEs credit standing. Hence, SMEs can then take remedial actions to resolve their weaknesses and improve their credit worthiness.
Facilitate Good Payment Behavior
The Bureau's platform is conceived to benefit the SME community as a whole, as it inculcates good payment behavior and positive credit track record as the fundamental rule for building, maintaining and enhancing credit standing. As The Bureau's information is used by financial institutions and other credit grantors, this approach is also expected to incentivize SMEs to develop a sound credit culture that enhances their eligibility for financing.