# Cladfy — Loan Status & Cashflow Scoring Guide

## 1\. Loan Status

Each lender relationship is assigned a **loan status** based on transaction analysis.

| Status | Meaning |
| --- | --- |
| 🟢 **Fully Paid** | Loan appears fully repaid. No outstanding obligation. |
| 🟢 **Multiple Loans Possible** | The loan appears over-repaid. This may occur due to interest, fees, charges, or an additional loan taken after the first was repaid. No confirmed outstanding obligation. |
| 🔵 **Likely Settled** | Most of the loan was repaid, and there has been no recent activity. The loan was likely discounted, written off, or settled. |
| 🟡 **Active Loan** | There is recent activity and an outstanding balance. This represents a **current credit obligation**. |
| ⚪ **Limited Data** | Loan activity exists, but repayment or disbursement information is incomplete. |

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## How to Interpret

*   **Active Loan** → Treat as current debt.
    
*   **Likely Settled / Fully Paid / Multiple Loans Possible** → Do **not** treat as active credit unless further evidence suggests otherwise.
    
    *   The duration used to classify a loan as "**Likely Settled**" is **90 days** of **inactivity**. Specifically, the criteria are: The borrower has **repaid ≥ 70%** of the borrowed amount, and there has been no activity with that lender for the last 90 days.
        

*   **Limited Data** → Ask the borrower for clarification.
    

**Important:** If the report **only shows repayments but no loan disbursement**, the client may be **repaying a loan on behalf of someone else,** or the loan may have been taken outside the statement period. In such cases, request additional information from the borrower.

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## 2\. Cashflow Score

The **Cashflow Score** estimates a borrower's credit risk using **transaction behaviour** from bank or mobile money statements.

The score reflects patterns such as:

*   Income stability
    
*   Spending behaviour
    
*   Credit usage
    
*   Cashflow consistency
    
*   Financial discipline signals
    

The score **does not rely on credit bureau data** and is calculated solely from the statement provided.

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## 3\. Risk Levels

| Score Range | Risk Level |
| --- | --- |
| 780–850 | Very Low Risk |
| 680–779 | Low Risk |
| 560–679 | Moderate Risk |
| 400–559 | High Risk |
| 300–399 | Very High Risk |

Higher scores indicate **stronger financial behaviour and lower default risk**.

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## 4\. How Lenders Should Use the Score

Recommended review flow:

1.  **Check the risk tier** for overall borrower risk.
    
2.  **Review Active Loans** to understand current obligations.
    
3.  **Ignore Fully Paid, Likely Settled, or Multiple Loans Possible** statuses when calculating debt burden.
    
4.  **Review highlighted factors** to understand key strengths or risks in the borrower profile.
    

The score should **support credit decisions**, not replace lender judgment.

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## 5\. Important Notes

*   The score reflects **only the uploaded statement period**.
    
*   Results may change when **new transactions are analysed**.
    
*   If income or repayments occur in another account not included in the statement, they may not appear in the analysis.