How Credit Rating (Risk Scoring) Works on 8lends

A higher rating means lower risk and a lower rate — see how the AAA-to-D scale mirrors S&P and Moody's logic while fitting small and mid-sized businesses.

Every borrower on 8lends is assigned a credit rating from AAA to D, which determines the interest rate and the project's admission to the platform. The rating is calculated by Maclear AG based on 40+ parameters: financial stability, credit history, collateral liquidity, business model, documentation. Projects with a rating below a certain threshold (C, CC, D) are not admitted to the platform. The rating is visible on each project's card and helps the investor assess risk before investing.

What a credit rating on 8lends is

A Credit Rating is an assessment of a borrower's creditworthiness on a scale from AAA (minimal risk) to D (rejected). The method is the same as that of international rating agencies (S&P, Moody's), but adapted for small and medium-sized businesses.

The rating answers the investor's main question: how likely is it that this borrower will repay the loan on time and in full? The higher the rating, the lower the risk — and the lower the rate at which the borrower raises funds.

The AAA–D rating scale

Rating	Risk level	What it means for the investor
AAA	Minimal	Highest financial stability, excellent collateral, impeccable history. Low rate
AA, A	Low	Strong indicators, minimal risks. Moderate rate
BBB, BB	Moderate	Good indicators with certain areas requiring attention. Higher rate
B, CCC	Elevated	There are risk factors requiring attention. High rate as a risk premium
CC, C	High	NOT published on the platform
D	Default / rejected	Not published on the platform

Only projects with an acceptable level of risk are published on 8lends. Applications with a rating of C, CC, and D are rejected at the due diligence stage.

How the rating is calculated

The rating is assigned by Maclear AG as Collateral Agent based on the result of a 5-stage due diligence — assessment across 40+ parameters:

Financial stability — revenue, profit, profitability, cash flow, debt-to-equity
Credit history — history of the company and its owners, overdue payments, existing obligations
Collateral — type, liquidity, market valuation, LTV
Business model — loan purpose, repayment plan, market position, management quality
Documentation — founding documents, financial statements, licenses

Fewer than 10% of received applications pass the entire cycle. Read more about the process

How the rating affects the rate

The rating and the interest rate are directly linked: the higher the risk (the lower the rating), the higher the rate as compensation to the investor for that risk.

Rating	Indicative rate range
High (AAA–A)	Closer to the lower bound of 19–25%
Medium (BBB–BB)	Middle of the range
Elevated (B–CCC)	Closer to the upper bound of 19–25%

This is the basic principle of lending: for higher risk, the investor receives higher potential returns. The investor chooses for themselves which risk–return balance suits them.

How to use the rating when choosing a project

The rating is one of the key factors, but not the only one. When choosing a project, it's worth looking at a combination of:

Credit rating — the baseline assessment of borrower risk
LTV — how well the collateral covers the loan (low LTV = greater safety margin)
Presence of Buyback — additional protection of the loan principal on certain projects
Loan term — 4–16 months, affects the liquidity of the investment
Collateral type — how liquid the asset is upon sale
Loan purpose — what the borrower is raising funds for

By combining projects with different ratings, the investor can build a portfolio tailored to their risk profile.

How the 8lends rating differs from crypto metrics

On most DeFi platforms, "risk" is assessed through on-chain metrics: pool utilization, the volume of collateral in crypto, health factor. This works for crypto-collateralized lending, but does not assess the real creditworthiness of a business.

The 8lends credit rating assesses a real business: its finances, history, ability to service debt from operating activities. This is closer to traditional bank underwriting, transferred into Web3 infrastructure.

Frequently asked questions

Who assigns the rating — an algorithm or people? The rating is assigned by the Maclear AG team as Collateral Agent based on the result of comprehensive due diligence. This is a combination of quantitative analysis (financial ratios, metrics) and qualitative assessment (business model, management, market position) — not a purely algorithmic assessment.

Can you see exactly how a specific project's rating was calculated? The project card shows the final rating and key parameters (LTV, collateral type, term). The detailed assessment methodology and the borrower's full financial statements are held by Maclear AG for reasons of the borrower's commercial confidentiality.

Does the rating change during the loan term? The rating is assigned at the time of the project's listing. Maclear AG monitors the borrower throughout the loan term; in the event of a significant change in the situation, investors are informed through the platform interface. The assigned rating itself reflects the assessment at the time of publication.

Can a project with a high rating not go into default? It can. The rating is an assessment of probability, not a guarantee. Even a borrower with an AAA rating could theoretically face force majeure. A high rating means a low probability of default, but not zero. That is why collateral and Buyback exist as additional layers of protection.

Why are projects with a rating below C not published? This is a basic investor protection filter. Projects with a high default risk (CC, C, D) are rejected at the due diligence stage — it is better not to admit a questionable application than to deal with a default later. Fewer than 10% of applications pass the entire verification cycle.

What does "risk score" mean — is it the same as credit rating? On 8lends, the term "credit rating" on the AAA–D scale is used — that is the precise term. The term "risk score" is sometimes used as a synonym in the industry, but 8lends adheres to a credit rating scale similar to international agencies.