Thanks to the “Average response times to SME loan applications” initiative, clients can be informed in advance and can easily compare the average response time for banks to reply to loan applications. Data is classified by region and by amount. Clients can compare different bank response times on the PattiChiari website. In addition, clients will find the list of all documents required in order to file a loan application, and they will be directly informed of the name of the staff person, or office, they will need to contact for performing the request.
Average response times
Carrying out assessments at counters, as well as releasing information enabling clients to compare average times, allowed banks, through comprehensive monitoring, to shorten the times needed to supply loans. With regard to the 53 banks (for a total of over 18.000 branches) that took part in the initiative, results showed that: average response times for loan applications up to 25.000 Euros went from 9 to 7.7 working days, while for applications between 25,001 Euros and 100,000 Euros from 12 to 9.7 working days, and for amounts between 100.001 Euros and 500.000 Euros from 14 to 13 working days. From June 2004 to August 2009, web users performed 1.1 million online comparisons.
70% of users who answered the online survey consider “Average response times for loans” initiative either “very” or “sufficiently” useful.
General criteria for SME creditworthiness
PattiChiari promoted the creation of a simplified, standard business plan; an instrument to help SMEs to understand the assessment variables and criteria used by banks in the evaluation of loan applications and to guide clients through a self-analysis process with the aim of determining the economic and financial compatibility of their choices.
As of December 2003, entrepreneurs are aware of and can easily understand the main variables in the evaluation of corporate financial situations and the assessment variables and criteria used by banks in the evaluation for SME loan application. This initiative allows the creation of a common basis for dialogue between banks and enterprises on investment choices. It encourages the use of a simplified, standard business plan for presenting in a professional way corporate projects and plans for development to banks. 5.2 million copies of the simplified, standard business plan were distributed to SMEs at the counters.