How we identify and mitigate them at Cresor
Risk is an intrinsic factor in any crowdlending investment. At Cresor, we mitigate this exposure through a rigorous management model backed by more than 10 years of risk control experience.
Weekly
Risk Committee meeting + extraordinary sessions
AI + Big Data
scoring model with AIS Group and Axesor
161.462.203 €
total funded
+2,900
investors who already trust Cresor
1.Pre-selection
We evaluate the opportunity, the promoter and the market context before beginning the analysis.
2.Risk analysis
We apply a risk model that combines technical, financial and automated scoring analysis. The risk committee makes a final decision based on the report and analyses generated.
3.Publication and formalisation
We publish the opportunity and formalise the transaction before a notary.
4.Quarterly monitoring
Continuous supervision of the project throughout the life of the loan.
Recovery protocol (if applicable)
We act to protect investor interests in the event of incidents, divided into an amicable stage and a judicial stage.
The degree or level of risk present in the opportunities published by Cresor is variable and must be analysed on a case-by-case basis. Investors can be guided by the published ratings to gauge the level of risk subscribed. Nevertheless, it is important to remember that in any company events or situations may occur that are difficult to foresee at the time of analysing the transaction and that may hinder the payment of obligations to creditors. Consequently, the risk of non-payment of loan principal and interest always exists. For this reason, Cresor encourages investors to diversify their investments as much as possible in order to better manage risk.
At Cresor we work with AIS Group, a specialist in credit risk management models, applying artificial intelligence, big data and financial analysis techniques to calculate three scorings before publishing any real estate project. Through this model, Cresor incorporated AIS's experience and knowledge in big data technology and credit risk analysis, automating the evaluation process and specialising it in the real estate sector while always retaining the human judgement provided by the Risk Committee and its members.
The promoter scoring is the result of a combination of three distinct calculation modules: the financial module, the operational module, and the qualitative module.
We combine quantitative and qualitative information to assess the probability that a promoter may default.
FINANCIAL MODULE
OPERATIONAL MODULE
QUALITATIVE MODULE
The rating of each development combines profitability with qualitative factors that assess the viability and quality of the project.
EXPECTED RETURN (IRR)
QUALITATIVE FACTORS
DEVELOPMENT SIZE
The objective is to provide a comprehensive and transparent assessment that helps investors make informed decisions.
Once the scorings and ratings for both the promoter and the development have been obtained, the model merges them into a global scoring and rating that takes into account the type of loan (fixed or participating) when assigning weights to the promoter and development scores.
For a fixed loan the model gives greater weight to the promoter rating, while for a participating loan (largely based on the estimated return of a project), the model favours the development rating.
The rating is visible in the thumbnail and detail of each opportunity published on the platform.
Once the global rating has been analysed — together with any other relevant element that, in the risk analyst's judgement, should be considered — the Risk Committee intervenes.
It is important to clarify that the ultimate investment decision rests with the investor, who assumes the risk of the transaction. It is therefore important to review the documentation provided by the company and decide individually whether to invest in that transaction. On our Spanish-language blog you can find articles on how to analyse a company's balance sheet and income statement.
For business project publications, a prior analysis of the documentation and information provided by the company is carried out, requesting a financial report from an external rating agency which provides, among other things, information on the promoter's credit risk, commercial, legal and commercial information and economic-financial information.
Simultaneously with the reports requested from external agencies for each business project, Cresor prepares a dossier following an equally thorough review of the received documentation, examining and analysing the various variables to assess the viability of the transaction, financial statements, their evolution, tax information, the purpose of the requested loan, the sector, payment behaviour in default files, business history, declared CIRBE debt, etc.
Finally, the conclusion is formulated in an integrated risk report and an internal rating is assigned to determine whether the company is admitted as a financing recipient on the Platform.
The final decision-making body, as in the real estate vertical, is the Risk Committee, whose function does not differ from the real estate model.
The rating is visible in the thumbnail and detail of each opportunity published on the platform.
The rating we publish in projects corresponds to a rating from an external rating agency, Axesor, on a maximum scale of 10. That is, a 10 corresponds to the best financial solvency and lowest probability of default, while 1 represents the worst financial solvency and highest probability of default.
The rating calculation takes into account both the financial information of the company and payment incidents, sector and length of business activity. At Cresor we also calculate an internal rating. Although not published in the project, it is a decisive factor for deciding whether to publish the project, as the company must meet our established criteria reviewed by the committee.
It is important to clarify that the ultimate investment decision rests with the investor, who assumes the risk of the transaction. It is therefore important to review the documentation provided by the company and decide individually whether to invest in that transaction. On our Spanish-language blog you can find articles on how to analyse a company's balance sheet and income statement.
Through this model, Cresor incorporated AIS's experience and knowledge in big data technology and credit risk analysis, automating the evaluation process and specialising it in the real estate sector.
Despite these improvements in technology and automation, Cresor recognises the importance of relying on the expert judgement of the risk analyst in order to: 1) cross-check the results of the automated tool; 2) identify risks or situations not covered in specific cases; and 3) detect model limitations for continuous improvement. This approach is applied to any project, promoter or company analysed by our crowdfunding service provider.
This body, made up of representatives from the commercial, investor, operations, advisory and management teams, is responsible for deciding the approval of the publication of each internally analysed opportunity and its conditions.
At this stage of the analysis, the technical, economic and commercial viability of the development is assessed, reviewing aspects such as costs, construction timelines, financing, pre-sales, permits and the degree of project progress, with the aim of evaluating the risk of the transaction.
At this stage, the sector, corporate structure, promoter experience and financial position are analysed (solvency, liquidity, leverage, EBITDA, debt declared with the Bank of Spain and other relevant indicators), for both the holder and, where applicable, the guarantors. The existence of guarantees reinforces the transaction security but does not influence the rating.
When analysing financial statements, a minimum of three closed financial years filed with the Commercial Registry, Audits or Corporate Income Tax returns are always used, together with provisional data for the current year (always included in the opportunity under 'interesting documents').
Once all parties have presented their case, the Management Committee votes. If there is a majority, the opportunity is listed on the Marketplace and the interest rate, term, payment system, guarantors, conditions and maximum financing amount are set. For repeat clients, the committee may be convened solely to ratify a drawdown within an already approved limit, always reviewing the company's updated data.
The interest on each loan depends on a combination of several factors.
The loan agreement is always formalised before a notary, with the list of all investors acting as lenders recorded in the deed. Once signed and the simple copy verified, the funds are disbursed. The loan comes into effect on the next business day after disbursement.
A 'framework agreement' is formalised before a notary establishing the conditions common to all future drawdowns. The first drawdown is normally partial; the rest are carried out by electronic signature under the framework agreement conditions. If the company's situation were to change, the Committee could decide not to make further drawdowns.
Once a project is published and funded, Cresor actively monitors it throughout the life of the loan — both for real estate and business projects.
REAL ESTATE
Interest is paid periodically by bank transfer and the full principal is repaid at project maturity. Maximum payment date is D+4.
BUSINESS
The first principal + interest instalment accrues one month from the effective date. Cresor issues a monthly SEPA B2B debit credited to the investor at D+4. Some transactions have quarterly or bullet payments — this is indicated in each publication.
If the approved framework agreement allows it and progress is as expected, we will propose new opportunities, which will first be ratified by our Committee.
We review the relationship with the company annually, unless circumstances require us to do so earlier.
If abnormal situations are identified, or situations that could dangerously increase the initially assessed risk level, Cresor will contact the Promoter/Company with the aim of, first, understanding the situation and, second, trying to ensure that the potential impact on the loan project is minimal and controlled. Cresor acts at this stage with the aim of achieving the maximum benefit for the investor.
Although all projects go through a thorough analysis and selection process, there is a possibility that, during the life of the loan, the Promoter or Company may be unable to meet its payment obligations.
In that case, Cresor coordinates the necessary actions to maximise the recovery of amounts owed on behalf of investors.
Amicable phase
First, a negotiation phase is initiated with the Promoter or Company to attempt to reach an out-of-court solution, which may include a payment schedule or other measures to regularise the situation.
If a refinancing agreement proposal is put forward, it must be approved by the majority of investors linked to the loan.
Judicial phase
Legal proceedings are the last resort and, whenever possible, we try to avoid reaching this stage through a negotiated solution. However, if no agreement is reached or the proposal does not obtain investor approval, appropriate legal actions will be initiated to claim the outstanding amounts.
The duration and outcome of legal proceedings depend on the circumstances of each case. Nevertheless, Cresor structures its transactions with mechanisms that reinforce the legal position of investors. These include formalising the loan agreement in a public deed, which, where applicable, facilitates and expedites the exercise of legal actions for debt recovery. In addition, many of our transactions have additional guarantees, such as mortgage guarantees, sureties or personal guarantees, which provide additional protection and may contribute to improving the chances of capital recovery.
Diversify across projects
Optimise your returns by distributing your capital across multiple projects, building a balanced portfolio and mitigating risk.
Review the rating
It provides a quick overview of the risk level of the opportunity.
Read the documentation
Once registered, you have access to all the detailed project information available on the platform until its financing is complete.
