The 5 most common mistakes when analyzing SME financing files

RocketFin

- 3 min read
The 5 most common mistakes when analyzing SME financing files

Granting financing to an SME is more than just reading a balance sheet.
Despite the tools available, many analysis errors persist, leading to unjustified refusals... or risky files being accepted.

In this article, discover the 5 most common mistakes, illustrated by case studies, and how to avoid them using decision-support tools like RocketFin.

🧠 Why is SME analysis so complex?

  • Financial data sometimes incomplete
  • Strong heterogeneity between sectors
  • Accounting statements with little information on actual health
  • Fast-changing by-laws, management and activities
  • Risks related to customer or supplier dependence

This makes manual analysis a high-risk area for error, especially in contexts of rapid growth or scale.

❌ Mistake 1: Overestimating net income or sales

The classic case :

A company posts positive net income and rising sales. A hasty conclusion: "healthy profile".

But we forget to check:

  • Net cash position
  • Short-term debt
  • Seasonality in the sector
  • Customer/supplier lead times

📌 A good accounting result can mask liquidity tensions or dependence on a single customer.

💡 Best practice:
Analyze actual cash flow and cash flow from operations rather than net income alone.

❌ Mistake 2: Ignoring weak legal signals

  • Recent change of manager not explained
  • SIREN deactivated or company dormant
  • Address linked to a commercial mailbox
  • Statuses contradictory to the real purpose

📉 These weak signals are often precursors of more serious problems (fraud, inactivity, legal instability).

💡 Best practice:
Set up automated verification of SIREN, legal representative and up-to-date articles of association.

❌ Error 3: Apply a single template to all folders

Each sector has its own specific features:

  • A construction company has low cash flow but high WCR
  • A SaaS with few assets but stable MRR
  • A business with a high inventory but a low margin

📌 Applying the same ratios to all these profiles distorts the analysis.

💡 Best practice:
Use a scoring engine contextualized by sector and business model.

❌ Error 4: Failure to detect inter-document inconsistencies

  • Sales declared on form ≠ Balance sheet sales
  • The manager signed is not the one indicated on the Kbis certificate.
  • The stated share capital does not correspond to the articles of association

These are frequent errors in SME files, often due to :

  • Documents not updated
  • Communication oversights
  • Attempts to disguise data

💡 Best practice:
Automate cross-checking of data between sources (PDF, API, form, statuses...).

❌ Error 5: Decide without clear explanation (or traceability)

An analyst rejects a file for "balance sheet doubt"... but nothing is documented.

🔍 This poses a problem:

  • In the event of a dispute
  • To explain a customer decision
  • To feed an AI / machine learning model

💡 Good practice:
Use a system that documents each decision, with the criteria used, date, score, and final status.

🔧 How to avoid these errors with a tool like RocketFin

RocketFin helps you :

  • Automatically score each file based on objective, traceable criteria
  • Detect document inconsistencies as soon as they are received
  • Tailor analysis to sector and business model
  • Generate a customer transparency scorecard
  • Save time while strengthening compliance

🏢 Case study: small business financing firm

Before RocketFin :

  • 40% of files refused without clear justification
  • Average analysis time: 48 hours
  • Risk of customer requalification = high

After RocketFin integration :

  • 70% automated analysis
  • Justified, readable, exportable score
  • Controlled acceptance rate without increasing risk

🎯 Result: +32% productivity and -20% scoring errors

📋 Robust analysis checklist for SME files

✅ Consistency between documents (Board of Directors, manager, share capital)
✅ Verification of legal status and active SIREN
✅ Actual cash flow and repayment capacity
✅ Detection of supplier/customer dependence
✅ Sectoral adaptation of ratios
✅ Archiving + decision justification

FAQ - SME financing analysis

Do I need an expert to analyze an SME case?
A well-configured tool can handle 70-80% of simple cases without a senior analyst. Borderline cases need to be escalated.

What if the company doesn't have a complete balance sheet?
You can analyze other signals: actual activity, articles of association, bank flows, payment behavior...

Can I reject a file automatically?
Yes, if the process is justified, documented and a human review is available on request.

🔗 Read more

👉 Automate the analysis of your SME files with RocketFin: www.rocketfin.ai

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