Credit risk assessment

We achieve this through our internal credit processes, designed to ensure that borrowers receive loans on competitive terms and that investors are adequately compensated for their risk exposure.

Since its inception in 2020, Gårdskapital has developed a unique capability to assess and price credit risk within the agricultural sector.

Credit risk frameworks and models

Our proprietary risk models adhere to established risk-scoring practices and are specifically tailored for agricultural businesses. By utilizing accounting data, investment budgets, and other financial information, we assess the future cash flow and repayment ability of loan applicants. Each company receives a credit score based on key metrics and sensitivity analyses, which evaluate expected profitability, liquidity margins, and balance sheet strength. While the focus is on cash flow and repayment ability, the collateral available for the loan is also considered.

Industry Advisors

Gårdskapital leverages its network of agricultural advisors who have extensive practical experience in farming to evaluate loan purposes and investments.

Credit Committee

Our experienced credit committee, comprising experts from both the banking and agricultural sectors, reviews loan applications to ensure thorough risk analysis and market-appropriate credit risk pricing.

Monitoring

We maintain close contact with borrowers to monitor risk developments over time and act promptly if unforeseen challenges arise.

Diversification

Investors can spread their risk by diversifying investments across multiple borrowers. By diversifying investments geographically and across different types of operations, portfolio-level exposure to risks such as weather and market fluctuations can be mitigated.