While SMEs form a crucial part of the Indian economy, their heterogeneity makes it difficult to evaluate them. A standardized rating system makes it easier to benchmark an entity’s parameters and validate claims. This in turn can provide bankers & lenders the crucial information that they require to finance an SME.
However, a traditional credit rating evaluates financial instruments compared to large companies, which may not be an appropriate measure of credibility for an SME. This is where SMERA’s SME Credit Rating differs:
- Provides a rigorous assessment of business & financial risks.
- Measures business credibility on a separate benchmark, specific to SMEs.
- Evaluates organizational parameters like operations, finance, technology & more.