More Benefits Of The 4thWay PLUS Ratings
- 4thWay-rated platforms attract more retail and institutional investors, increasing lending capital and broadening your platform’s capital base.
- 4thWay provides consultancy to very HNW investors on their international investments. If you provide us with the information to be rated, we’ll be able to discuss your platform with those investors directly.
- Platforms have told us that some institutional investors don’t invest without one of our ratings.
- Having external specialists independently verify the risk-reward balance in a conservative way, as investors want, is much more effective way to win credibility.
- You’re just looking at the cost of the 4thWay team doing the ratings analysis and this builds an automatic focal point for showing investors that you’re on track and offering a great risk-reward balance. That’s not easy to do just with an interest rate alone.
4thWay’s record in ratings
Since 4thWay started in 2014, all the investments we have rated have performed at least as well as expected or have surpassed expectations.
No investment has performed badly while having a rating or within 12 months of losing their rating.
It’s not as if we’ve been helped by a benign economy. Fluctuations in some borrower markets over the past eight years have not made it easy for all money lenders.
And we did just have a massive hit from the 1-in-300-year pandemic recession.
So we really are good at what we do.
How to earn each rating
There are three positive 4thWay PLUS Ratings you could earn:
3/3 “Exceptional” 4thWay PLUS Rating means that the platform not only has sufficient data/history for us to conduct Basel stress tests, but that investors can expect, across many loans and a basket of similarly rated accounts, that they will continue to make money even through a severe recession and major property-market crash by the time their loans are fully repaid.
2/3 “Excellent” 4thWay PLUS Rating means that the platform has sufficient data/history for the Basel tests and that investors can expect, across many loans and a basket of similarly rated accounts, that they will continue to make money even through a minor recession and modest property-market crash by the time their loans are fully repaid.
1/3 “Fair” 4thWay PLUS Rating means that the platform has sufficient data/history for the Basel tests and that investors can expect, across many loans and a basket of similarly rated accounts, that they will make money during a small blip in the economy by the time their loans are fully repaid.
Alternatively, platforms that could withstand stronger recessions and property-market crashes still receive 1/3 if investors have unusually large risk of losses caused by a small number of outsized loans.
Note that our ratings system is regularly updated and will change in H1 2022. However, the top rating will still be based on a severe recession and property crash. You can discuss any upcoming changes in a call with Liam or Neil.
What 4thWay needs from you for its ratings
We’ll need from you a monthly loan book, containing such information as the type of loan, borrower ID, loan ID, loan status, loan amount, details on security and a bit more.
We shall process each loan book with our custom-made software. However, this is not like simply producing a benchmark of returns. Specialists analyse each loan book and conduct ongoing research and checks to ascertain the accuracy and reliability of the data provided.
4thWay does some initial background research and is likely to have additional questions about your model, methods and data. The more you and the key decision makers on the credit team are able to support the research, the easier it is.
Are you ready for a 4thWay PLUS Rating?
Send us a quick email to discuss: firstname.lastname@example.org