CTOS Holdings Sdn Bhd’s unit, CTOS Data Systems Sdn Bhd has launched ‘CTOS SME Score’ to provide an easy and universal assessment for creditworthiness for the small and medium enterprises (SMEs).
CTOS Holdings group chief executive officer Dennis Martin said the solution would empower SMEs with confidence to make quick, consistent and objective decisions as they assess the businesses and owners to whom they will potentially extend loans, leases and trade credits.
“The solution would serve to drive SME growth in Malaysia by providing an easy and universal assessment of creditworthiness to get the best terms and offers from potential creditors and other SMEs. In an increasingly congested SME financing segment, we also anticipate that the quick decisions turnaround time and comprehensive access to data offered by the solution would be the trigger point for SME decision makers when looking for financing,” he recently told reporters at the launching event.
Developed in partnership with FICO, the de facto standard for credit scoring in the United States, Martin pointed out that the solution was also able to provide updates on SMEs’ current financial standings, allowing lenders for pre-emptive actions against potential bad debt or late payment.
As a comprehensive industry score, he said the solution sourced its data from CCRIS (Central Credit Reference Information System) Company Credit Data and CCRIS Consumer Credit Data from Bank Negara Malaysia, filing data maintained at national registrars, as well as financial data and ratio and business information and proprietary CTOS Data maintained by it bureau partners.
Currently, there are almost one million SMEs in Malaysia making up 98 per cent of local businesses and created employment for two-thirds of all working Malaysians, he said, adding the segment contributed 37 per cent to the national gross domestic product (GDP) and expected to rise to 41 per cent by 2020. Martin said based on CTOS SME Score analyses, out of one million SMEs in Malaysia, 54 per cent of companies, 60 per cent of partnerships and 52 per cent of sole proprietors have recorded a score of 290 or more, indicating average to excellent creditworthiness.
The recent event also saw CTOS inked Memoranda of Understanding with OCBC Bank (Malaysia) Bhd and Peoplelender Sdn Bhd for the validation of the solution.
“Based on the feedback, the validation had gone through well and OCBC had cited that they might be able to double the amount of lending they did before with the solution. “This is positive as it would help GDP and growth of the economy, and Malaysia as a whole. I need to clarify that when people look at CTOS and Scores as stopping people from getting financing…this is quite the reverse,” he added.
For a special introductory offer, CTOS SME Score will be available for RM9.90 until September 30 this year, a discount from the normal price of RM15.20. CTOS Credit Manager subscribers will also enjoy the solution for free to experience the solution first-hand.