Supporting credit risk evaluation for SMEs: a new model from urban planning management

The paper describes an empirical analysis on a sample of 208 Italian SMEs, in order to evaluate the credit default risk. A comparative analyis of results has been carried out by using two different models, a “classical” model from credit risk evaluation and a model from urban planning management. The aim of the research was to test to what extent it can be successfully used a model from another field for evaluating credit risk in SMEs and for achieving more detailed information for a better risk evaluation. The considered models are: a multidiscriminant analysis model (à la Altman), and a parametric duration model, a Location influences on firm survival rates model. Combining the two models we can reach a broader vision for the credit risk evaluation. While Altman provides an estimate on the individual company and its financial situation, with the second model we can integrate a more accurate study with the first results.