Credit Assessment Process

At liwwa, we focus on developing the most sophisticated tools for credit assessment and financial reporting. Our in-house credit model relies on a diverse set of inputs to arrive at one discrete output, the credit grade.

We employ a credit scoring system to provide users - both borrowers and lenders - with a clearer understanding of the assessment process. Doing so also allows us to deliver more fully on two of our core values: Transparency and Fairness.

As part of our assessment process the Credit Team first checks whether the applicant meets the minimum requirements to be considered for a liwwa loan, such as having a Certificate of Registration and Trade License and being in operation for more than a year.

Since small businesses often lack prepared financials, Credit Officers use bank statements and in-person assessments as proxies. Then, Credit Officers weigh and analyze the data collected to generate a credit report and credit grade, based on which the Credit Committee makes its decision on approving or rejecting a loan.

The credit grade is the outcome of our proprietary survival risk assessment model which uses advanced analytics combining historical data and industry expertise while factoring in three dimensions: the borrower’s profile, the business profile, and the business’ financial position.


Loans are assigned credit scores ranging from 0 to 10 which are translated into risk level grades from A (lowest risk) to D (highest risk). This range provides Investors with more granular ratings allowing for more refined choices among risk levels.