Understand the operating cycle
A pharmacy and a clinic can have different payment cycles even when both operate in healthcare. One may depend on inventory turnover while another waits for third-party settlement. Start an SME lending assessment by understanding how the business earns revenue, collects cash and meets recurring commitments. Avoid treating the sector label as a complete credit profile.
Connect financial and operating evidence
Ask for appropriately authorised bank records, financial statements and a receivables or inventory schedule relevant to the product. Reconcile a sample to cash receipts and identify gaps. Establish what information is necessary for financing and how sensitive information will be kept out of routine review wherever possible.
Configure the facility around the use
A working-capital line and an invoice-finance facility require different eligibility and servicing rules. Define the intended purpose, repayment source, evidence requirements and exception approvals before configuring the product. Demonstrate what happens if a payer is late, a receivable is disputed or the borrower requests a change in terms.
Evaluate through servicing
Ask to see the approved terms carried into disbursement, repayment allocation and portfolio reporting. Compare a normal repayment with an exception that requires human follow-up. For a CXingularity demonstration, bring synthetic records representing your target borrower and facility. Use the walkthrough to agree the required origination, credit and loan-management configuration rather than relying on a headline lending-volume claim.
Continue with our SME lending software evaluation guide and workflow handoff checklist.