Bondster Score
Methodology and Principle
The Bondster Score is an internal quantitative metric used to compare lenders on the Bondster platform based on selected financial and operational characteristics.
The score is expressed on a 100-point scale and is based on historical data and available information about the lender.
The model converts the individual metrics being tracked into a uniform point scale so that lenders of different sizes, with different business models, or with different types of financed portfolios can be compared with one another. The individual areas are then combined using predetermined weights to produce a single final score.
The methodology is based on predefined rules and is applied uniformly to all providers. This ensures that the results are reproducible and guarantees consistent comparisons across the entire platform.
What is the Bondster Score?
The goal of the Bondster Score is to provide investors with a clear and comparable overview of selected financial and operational characteristics of individual providers. The score ranges from 0 to 100 points, with a higher score generally indicating a stronger combination of the evaluated factors.
The Bondster Score is a purely quantitative indicator based on:
- historical data
- financial statements
- provider reporting
No manual assessment or expert opinion is factored into it. The calculation is performed automatically according to a predefined model.
- This is not a credit rating as defined by EU regulations
- This is not a recommendation or an estimate of future performance
- It is used solely to compare providers with one another
Accounting for portfolio type
The model takes into account that different loans behave differently, whether they are short-term, medium-term, or long-term.
Specifics of Short-Term Loans
- Capital can be turned over multiple times a year
- Performance is therefore adjusted to reflect this
Distinction Between Cash Flow Profiles
- Immediate repayment
- Later collection
This classification is based on the portfolio’s historical cash flow, not on the lender’s declarations.
How to interpret the Bondster Score
The score is calculated by converting individual metrics to a scale of 0 to 100 and then calculating their weighted average.
This means:
- two companies with the same score may have different strengths and weaknesses
- the score is an aggregate; it is not a detailed breakdown of risks
- a change in one area may be “overridden” by another metric
Important context:
- the model works only with available data
- it does not capture all types of risks
- it does not evaluate individual loans, but rather the provider as a whole
Disclaimer
Bondster Score:
- is based solely on historical data
- does not include all sources of risk
- does not reflect real-time macroeconomic changes
- does not evaluate individual loans
Therefore, use it as a comparative metric, not as the sole criterion for decision-making.
Main evaluated areas
The Bondster Score is calculated based on four key areas:
1. Rentability (30 %)
Evaluates the ability to generate profit and its stability:
- return on assets (ROA)
- return on equity (ROE)
- operating margin
- absolute profit amount (important for scalability and stability)
2. Portfolio Quality (35%)
The most important part of the model:
- collection ratio (how much is actually recovered)
- proportion of non-performing loans (e.g., PAR 180)
3. Liquidity and Capital (25%)
Financial Stability:
- current ratio
- equity ratio
4. Reporting Transparency (10%)
- timeliness of financial reporting
- timeliness of portfolio data
- availability of audited financial statements
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