Generalized Net Model of the Methodology for Analysis of the Creditworthiness and Evaluation of Credit Risk in SMEs Financing

George L. Shahpazov, Lyubka A. Doukovska, Krassimir T. Atanassov

Abstract

The launch of the new programming period of the EU in 2014 will lead to many changes in the way the EU budget is funded. The European Commission is considering various ways to generate their own income to make it more independent of the Member States. Unfortunately the consequences of the reforms might have negative influence to European and in particular to the Bulgarian economy and especially for SMEs. The effective results in these conditions are to ensure financial resources for SMEs beneficiaries - increasing the amount of advance payments, creating additional financial instruments. Prior to SMEs financing, a methodology for analysis of creditworthiness and credit risk assessment procedures are applied. The aim of the methodology is to contribute and establish an unified and systematic approach to analyzing and assessing credit risk, which is to lead to a more thorough and objective assessment of the credit and minimize the risk undertaken by the financial institution. The system of credit risk assessment is a collaboration of estimates of the specified indicators. The final conclusion of the process should result into a motivated standpoint, based on which, a decision on further conduct of the Bank towards the loan request will be made (guarantees and other commitments, bearing credit risk), along with periodic risk assessment procedure on already granted loans. In this paper is provided an analysis using the Generalized Nets. They are used as a tool for modelling of different processes in industries and medicine. In the present paper, an application of these nets apparatus for assistive technology and the advantages of using such model, for SMEs financial support mechanism are discussed.

References

  1. Shahpazov G., L. Doukovska - Structuring of Growth Funds with the Purpose of SME's Evolution under the JEREMIE Initiative, Proc. of the Second International Symposium on Business Modeling and Software Design - BMSD'12, 4-6 July 2012, Geneva, Switzerland, ISBN 978-989-8565-26-6, pp. 159-164, 2012.
  2. European Commission, “SEC (2011) 876 final/2”, Brussels, 27.10.2011.
  3. The Global Competitiveness Report 2011, www.ced.bg.
  4. Atanassov K. - Generalized Nets. World Scientific, Singapore, New Jersey, London, 1991.
  5. Atanassov K. - On Generalized Nets Theory, “Prof. M. Drinov” Academic Publishing House, Sofia, Bulgaria, 2007.
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Paper Citation


in Harvard Style

Shahpazov G., Doukovska L. and T. Atanassov K. (2013). Generalized Net Model of the Methodology for Analysis of the Creditworthiness and Evaluation of Credit Risk in SMEs Financing . In Proceedings of the Third International Symposium on Business Modeling and Software Design - Volume 1: BMSD, ISBN 978-989-8565-56-3, pages 292-297. DOI: 10.5220/0004776702920297


in Bibtex Style

@conference{bmsd13,
author={George L. Shahpazov and Lyubka A. Doukovska and Krassimir T. Atanassov},
title={Generalized Net Model of the Methodology for Analysis of the Creditworthiness and Evaluation of Credit Risk in SMEs Financing},
booktitle={Proceedings of the Third International Symposium on Business Modeling and Software Design - Volume 1: BMSD,},
year={2013},
pages={292-297},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0004776702920297},
isbn={978-989-8565-56-3},
}


in EndNote Style

TY - CONF
JO - Proceedings of the Third International Symposium on Business Modeling and Software Design - Volume 1: BMSD,
TI - Generalized Net Model of the Methodology for Analysis of the Creditworthiness and Evaluation of Credit Risk in SMEs Financing
SN - 978-989-8565-56-3
AU - Shahpazov G.
AU - Doukovska L.
AU - T. Atanassov K.
PY - 2013
SP - 292
EP - 297
DO - 10.5220/0004776702920297