Beruflich Dokumente
Kultur Dokumente
MSMEs
MIDDLE INCOME
1.4 billion people
Earning from $2000-$20000 a year
(25% of world population)
LOW INCOME
1.4 billion people
Earnings from $3 to $5 a day
(25%of world population)
Base of SUBSISTENCE
Pyramid 1.6 billion people. Earning from $1-$3 a day
(29% of world population)
EXTREME POVERTY
1 billion people. Earning less than $1 a day
(18% of world population)
THE MISSING MIDDLE
Number of Companies
Finance Availability
Our Research
Capital First Ltd Capri Global Capital Karvy Financial India Factoring and Reliance Capital
Ltd Services Ltd Finance Solutions Ltd
Bureau No
Checks
Yes
Credit Rating
Reject
Scorecard
Model
No
Rating
Yes
Without Revenue Sharing
With Collaterals
Collaterals Model
Accept No
Yes
Prepare Funding
Credit Rating Scorecard Model
• Market Analysis
• Technical Analysis
• Financial Analysis
• Economical Analysis
• Quantitative Analysis
• Qualitative Analysis
Credit Rating
Scorecard
Model
Basis of Model Selection
Credit Rating
Model
Rating
B1) Help
B) B2) Post
clients with
Relationship clients B-Plan
preparation of
Manager on platform
B-plan
Other Purposes –
Actual 6 months
Revenue<Projected Early Repayment
Revenue
Revenue Structure Analysis
On the Revenue Side, assume that:
N = Number of successful funding transactions per year
A = Average amount per funding transaction= Rs. 20,00,000
fa = annualized rate of Funding Fee (FA fee above) = 10 % per year on funding amount
fd = rate of Funding Fee per funding duration = 30% per funding amount (per funding duration)
Rs=Revenue sharing rate
Pr= Projected returns on funding amount
Fr = Registration fee = Rs 2400
Fc = Legal fee (contract) = Rs 3200
Ft = Translation fee = Rs 1600
Fo = Other fees = Rs 1000
Total Annual Revenues = A*fd*N + [Fr+ Fc + Ft+ Fo+(Pr*Rs)]*N
= Rs 6,00,000 * N + Rs 2,08,200* N
= Rs 8,08,200* N
Cost Structure Analysis
At Break-even Point:
R=C
Rs 8,08,200*N = Rs 103,14,000
N = 13
S = The Break-even Sales, or the total amount of successful funding
S= A*N = Rs 20,00,000 * 13 = Rs 2,60,00,000
Auditing Rule & Reward – Punishment Function
Cases Incentivised report decision Pay out by entrepreneur Reward
ya> ye Ya (incentivised by reward) Sye + S/2(ya-ye) Honesty recognition ,
faster move to next
investment size.
Ye (still acceptable by Sye
investors)