Xhtdnb Scoring Steps for Business Household Customers at Vib and Acb

VIB: 3 steps

ACB: 5 steps

1

Conduct scoring of 4 criteria: (1) Information about the business owner; (2) Other information related to the business establishment. (3) Information about the business household's relationship with VIB and other credit institutions; (4) Information about the business/investment plan.

Information collection: (1) Information about the business owner: 11 indicators; (2) Other information related to the business household: 21 indicators: (3) Business plan: 18 indicators..

2

Total score and risk classification: Total customer score = score of each group of criteria above * corresponding weight

response of each group of criteria.

Customer credit and creditworthiness scoring

3

Make a decision

Collateral scoring

4

Summary, evaluation

5

Leader makes decision

Agribank

ACB

A

Target

_Includes 22 indicators divided into 2 parts: Overview of business activities and Relations at VBARD and at other credit institutions

_ Score on a 5-point scale: 100; 80; 60; 40; 20 in the order below

100

_Includes 22 indicators. Not divided into 2 parts like Agribank

_ Score on a 5-point scale: 100; 80; 60; 40; 20 in the order below

100

Business Overview

62.5

1

Business plan in phase 1

for the next 3 years

Have a clear business plan and are starting/in the implementation phase/Have a business plan but no sign of implementation/No business plan

4.4

Indicator name : Business plan for the next 2 years : Have a clear business plan in the implementation phase; Have a business plan but have not implemented it/No plan

5

2

Accounting records

Complete, clear, transparent/Recorded but not clear, transparent/CBTD has no information Corresponding to points: 100; 60; 20

4.4

Agribank breed

5

3

Average number of years of work of workers

business activities

>3N; 2-3N; 1-2N; <1N

Corresponding to points: 100;80;60;40

6.7

Agribank breed

5

4

Average age of workers

>7N; From 5 - <7N; From 3 - <5N; From 1 - <3N; <1N

4.4

<5N; 4-5N; 2-4N; 1-2N; <1N

5

5

Method of organizing production and business of business households

High level of specialization, scientific production organization; Normal level of organization; Unreasonable production and business organization

Corresponding to points: 100; 60; 40

4.4

Agribank breed

5

6

Does the business have its own website?

Yes, the website is well-designed and informative; Yes, the website is poorly designed and informative; No website

Corresponding to points: 100;60;20

2.2

Do not use this indicator

CBTD assesses the level of interest of business households in building brands and distribution networks.

Very interested and has a specific plan; Interested but no specific plan; Not interested Corresponding to points: 100; 60; 20

2.9

Other indicator names: Level of interest of business households in building brand reputation and service quality

Scoring content is similar to Agribank

5

8

Dependence on a small number of suppliers of raw materials

Easy to find suppliers in the market; Normal; Dependent on a few certain suppliers, difficult to find other suppliers to replace when necessary

Corresponding to points: 100; 60; 20

4.4

Indicator: Relations with input suppliers

Good; Normal; Unstable Corresponding to points: 100; 60; 20

5

9

Dependence on a small number of consumers (output products)

The demand for the product in the market is very large; Normal; The output product is sold to a small number of certain consumers, it is difficult to consume the product for other subjects

Corresponding to points: 100; 60; 20

4.4

Indicator: Relationship with purchasing partners

Have regular customers; Normal; Unstable

Corresponding to points: 100; 60; 20

5

10

Number of years of relationship with key input partners

>5N; 3 - <5N; 2- <3N; 1N; <1N

4.4

Do not use this indicator

11

Number of years of relationship with key consumer partners

>5N; 3 - <5N; 2- <3N; 1N; <1N

4.4

Do not use this indicator

12

CBTD's assessment of the level of compliance of business households with regulations related to labor use (social insurance, labor safety...), environmental pollution, products of unknown origin, food hygiene and safety, encroachment on roads...

No violation; Violation

Corresponding to points: 100;20

4.4

Agribank breed

5

13

Average annual revenue growth rate of household business revenue in

Last 3 years

>=15%; 10 - <15%; 2 - <10%; 0 - <2%; <0%

6.7

>20%; 10-20%; 5-10%; 3-5%; <3%

5

Development prospects of business households according to CBTD's assessment

Rapid and steady growth in the next 3 to 5 years; Moderate and relatively steady growth in the next 3 to 5 years; Moderate growth, but with unsustainable factors; Signs of recession in the next year; Rapid recession

4.4

Rapid and steady development; Development at a normal level; Normal development but still has unsustainable factors; Signs of recession; Recession

5

15

Registered Business

Do not use this indicator

Yes; No Corresponding points: 100;20

5

16

Level of compliance of business households with obligations to the state budget

Do not use this indicator

Good Compliance; Bad Compliance

Corresponding to points: 100;20

5

B

Relationships at Agribank and other credit institutions

37.5

17

Business household's debt repayment history (including principal and/or interest) over the past 12 months

Always pay debts on time; New customers have a transaction relationship with the Bank for the first time; Have had overdue debt/restructured debt repayment period within the past 12 months

Corresponding to points: 100;60;20

4.4

Do not use this indicator

18

Number of debt restructurings (including principal and/or interest) in the past 12 months

0 times; 1 - 3 times/new customer; 4 - 5 times; >5 times

Corresponding to points: 100;60;40;20

4.4

0 times; 1-2 times; >3 times or overdue debt

Corresponding to points: 100; 80; 40

5

19

Proportion of debt (principal and/or interest) restructured and/or overdue debt to total outstanding debt at the time of assessment

0%; 0% - <1%; 10% -<30% or new customer; 30% - <

50%; >50%

4.4

0%; <5%; 5-10%; 10-15%; >15%

5

20

Overdue debt status of current outstanding debt

No overdue debt; Overdue debt less than or equal to 90 days; Overdue debt from 91 days to 180 days/New customers; Overdue debt from 181 days to 360 days; Overdue debt over 360 days or debt with restructured repayment period overdue from 90 days or more

4.4

No overdue debt; Overdue debt <90 days; Overdue debt >90 days;

Corresponding to points: 100; 80; 60

5

Status of providing information of business households as requested by the Bank in the past 12 months

Information is always provided fully, on time and accurately as required by VBARD. Very cooperative in providing information; Information provided meets requirements. Cooperation is average. Or new customers provide sufficient information; Incomplete or not on time; Uncooperative in providing information or providing inaccurate information

Corresponding to points: 100;80;40;20

4.4

Indicator name: Information provision situation of business households

Actively complete and on time; Satisfactory, average cooperation; Incomplete; Not provided

Corresponding to points: 100; 80; 60; 40

5

22

Credit relationship period with the Bank

>5N; 3 - <5N; 2- <3N; 1N; <1N

Corresponding to points: 100;80;60;40

6.7

>3N; 2-3N; 1-2N; <1N

Corresponding to points: 100;80;60;40

5

23

Overdue debt status at other banks in the past 12 months

No overdue debt/ No outstanding loans at other banks; Had overdue debt in the past 12 months but paid off at the time of assessment; Currently have overdue debt

Corresponding to points: 100; 60; 20

4.4

Indicator: Outstanding debt status at other credit institutions in the past 12 months

Always pay on time; Never had a credit relationship; Already have overdue debt; Currently have overdue debt

Corresponding to points: 100;80;60;40

5

24

Orientation of credit relations with business households from the perspective of CBTD

Extend new credit/loan; Maintain; Tighten credit; Terminate/Refuse loan

Corresponding to points: 100;60;40;20

4.4

Extend credit; Maintain; Tighten credit; Terminate/Refuse to lend

Corresponding to points: 100;80;60;40

2

25

Use other services besides credit at the bank

Do not use this indicator

Used; Not Used

Corresponding to points: 100;80

3

PART III. BUSINESS PLAN

STT

D

Includes 21 indicators

100

Includes 18 indicators

100

1

Medium and long-term debt repayment capacity: (Expected net income after tax + Depreciation expenses)

Expected depreciation)/Investment loan due for repayment in the coming year

>1.5 times; 1.3 - <1.5 times; 1 -<1.3 times; 0.5 - <1 times;

<0.5 times

15

Do not use this indicator

2

Business plan output

Is a product that the business is still trading; Including both products that are still trading and one or more new products; Is a completely new product

Corresponding to points: 100; 80; 40

2.5

Do not use this indicator

Business production experience of the household owner regarding the goods produced/traded in the business plan

>=3N; 1- <3N; <1N

Corresponding to points: 100; 80; 40

5

>5N; 3-5N; 1-3N; <1N

Corresponding to points: 100;80;60;40

5

4

CBTD's assessment of the level of market research on the output products of the business plan

Researched and quantified most of the information about prices, types, similar products on the market and consumer tastes and needs; Researched but to a limited extent; No survey

Corresponding to points: 100; 60; 20

2.5

Indicator name: level of product research

Similar content to Agribank

5

5

How to consume products of business plan

According to the current method that the business is applying; Combination of old and new methods; Completely new but suitable for the product in the plan; Completely new

Corresponding to points: 100; 80; 60; 40

2.5

According to the current method that the business is applying; Combination of old and new methods; Completely new

Corresponding to points: 100;60;20

10

6

Target audience of the business plan

Existing customers; Mixed new and existing customers; Completely new customers;

Corresponding to points: 100; 60; 40

2.5

Corresponding to points: 100; 80; 60; 40

10

7

Price fluctuation trends of the business plan's products in the market over the past year

No fluctuation; Fluctuation within the range of 0% to less than 5%; Fluctuation within the range of 5% to less than 10%; Fluctuation from 10% or more;

Corresponding to points: 100; 80; 60; 40

2.5

Indicator name: Price fluctuation trend in the market of the business plan's products

Similar content to Agribank

5

8

Product price of business plan compared to general market level

Below average; Average for the market; Above average

Corresponding to points: 100;60;20

2.5

Similar content to Agribank

5

9

Profit after tax/equity

> =20%; 15-<20%; 10 - <15%; <10%

Corresponding to points: 100;80;60;40

10

Do not use this indicator

10

Profitability of business plan

= profit from business plan/sales revenue

>=25%; 20-<25%; 15-<20%; 10-<15%; <10%

10

Do not use this indicator

11

Level of certainty about product availability

There is a clear sales contract or purchase commitment; Only a purchase order; Nothing else

Corresponding to points: 100; 80; 40

5

Sure; Normal; Unsure

Corresponding to points: 100; 80; 40

5

Ratio of deferred revenue to total revenue

Late payment under 10% of revenue; Late payment from 10% to less than 15% of revenue; Late payment from 15% to less than 20% of revenue; From 20% or more

Corresponding to points: 100; 80; 60; 20

2.5

<40%; 40-50%; 50-60%; >60

Corresponding to points: 100;80;60;40

5

13

Average number of days late

Under 15 days; From 15 days to under 30 days; From 30 days or more

Corresponding to points: 100; 60; 20

2.5

Do not use this indicator

14

Price fluctuation of raw materials and input products in the past 12 months

No fluctuation; Fluctuation within the range of 0% to less than 5%; Fluctuation within the range of 5% to less than 10%; Fluctuation from 10% or more;

Corresponding to points: 100; 80; 60; 40

5

Indicator name: price fluctuations of raw materials and input products

Similar content to Agribank

5

15

The possibility that a company's products will be replaced by "substitute products"

Very difficult, there will be no alternative products on the market within the next year; Relatively difficult; Normal; Relatively easy; Very easy, there are many alternative products on the market for consumers to choose from

2.5

Do not use this indicator

16

Stability of input materials/goods

Very stable; Relatively stable or fluctuating but with little impact on business operations and profits; Unstable, with great impact on business operations and profits

Corresponding to points: 100;60;20

5

Do not use this indicator

17

What stage of the product life cycle is the business plan product in?

In the growth stage; In the market penetration stage; In the saturation stage; In the decline stage

Corresponding to points: 100;60;40;20

2.5

Indicator name: Product of the planBusiness Current products; Including current products; Completely new products Corresponding to points: 100;60;20

5

18

Customer preferences for product/service types in business plan

Unchanging, little changing or simple; Normal; Frequently changing or unmeasurable

Corresponding to points: 100;60;20

2.5

Very little change; Normal; Frequent change

Corresponding to points: 100; 60; 20

5

Do changes in the natural environment or seasonality affect the business plan?

Not/little affected; Sensitive

Corresponding to points: 100;20

2.5

Less affected; More affected

Corresponding to points: 100;20

5

20

Percentage of equity capital involved in the business plan

From 50% or more; From 40% to less than 50%; From 30% to

under 40%; From 20% to under 30%; <20%

10

>50%; 40-50%; 30-40%; <30%

Corresponding to points: 100;80;60;40

5

21

Feasibility of business plan according to CBTD's assessment

Possible, measurable; Possible, but difficult to measure; Not possible

Corresponding to points: 100; 60; 20

5

Do not use this indicator

22

Ability to respond in terms of time and quantity of products supplied

Do not use this indicator

Sure; Not Sure

Corresponding to points: 100; 20

5

23

If consumption decreases by 10%

Do not use this indicator

EBIT/invested capital:

>15%; 12-15%; <12%; loss

Corresponding to points: 100;80;60;40

5

24

EBIT/equity

Do not use this indicator

<40%; 40-50%; 50-60%; >60%

Corresponding to points: 100;80;60;40

5

25

Net profit margin/Revenue

Do not use this indicator

>15%; 10-15%; 5-10%; 3-5%; <3%

5

26

Average days overdue for receivables (days)

Do not use this indicator

<15N; 15-30N; >30N

Corresponding to points: 100;60;20

5