Applicability of Large Corporate Credit Models to Small Business Risk Assessment

Khalid El-Awady

Papers from arXiv.org

Abstract: There is a massive underserved market for small business lending in the US with the Federal Reserve estimating over \$650B in unmet annual financing needs. Assessing the credit risk of a small business is key to making good decisions whether to lend and at what terms. Large corporations have a well-established credit assessment ecosystem, but small businesses suffer from limited publicly available data and few (if any) credit analysts who cover them closely. We explore the applicability of (DL-based) large corporate credit risk models to small business credit rating.

Date: 2021-12
New Economics Papers: this item is included in nep-cfn, nep-ent, nep-ore and nep-rmg
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