In Malaysia, SME (Small Medium Enterprise) are defined as firms with sales turnover not exceeding RM50 million.
Besides rating individuals, CTOS also rates SME and the scoring ranges from 100 to 400 with 400 being having the best credit rating. It's best to avoid lending to companies with ratings of 270 and below as most banks also avoid lending to these companies.
CTOS SME rating is used by banks, financial institutions and even Peer to Peer lending/financing (eg Funding Societies) companies to evaluate customer risk. The SME rating credit score can be purchased at CTOS website online. CTOS gets data from various sources like BNM CCRIS, SSM and internal metrics to generate the CTOS SME rating.
Below is a sample report on one of the issuer (borrower) listed on Funding Societies. The SME credit score is shown for reference. The SME rating of the issuer is 334 which is considered in the good range. However do not, good credit rating does not imply the company will not default on its debt obligation in the future. Do not funding societies does not publicly say if it uses CTOS SME credit score but the weightage seems similar. The other notable credit agency in Malaysia is Experian (formerly RAM Ratings Agency Malaysia).
📍Links
https://ctoscredit.com.my/business/evaluate-new-customer/ctos-sme-score/
