Credit Score

What is a company credit score?

Your company credit score helps your customer and suppliers ascertain your company’s financial health.

Credit Score Calculator

Different credit risk information providers use different scoring formulas. Therefore use different credit score calculators.

The first 4 DUNSRight drivers provide the platform to produce Predictive Indicators (Credit Score from D&B). Statistical models and analyses are used to indicate how a business is likely to perform in the future.

D&B failure Score (Predictive Indicator)

Definition: predicts the likelihood that a business will fail or experience a failure lead-up event in the next 12 months.

D&B Failure Score is a 1-100 percentile score i.e. a business scoring 1 means it falls into the BOTTOM 1% of UK businesses that have the HIGHEST risk of failure.

The Failure Score offers a much more granular assessment of risk than the...

Risk Indicator (Predictive Indicator)

Definition - A summary of how likely it is for a business to fail or experience a failure lead-up event in the next 12 months.

Credit Score Chart

Below illustrates D&B's own credit score chart and risk indicator. Many fraudulent cases or companies that have a failure lead up event have a credit score (risk rating of) 4

Failure Score	Risk Indicator	Risk Definition	% Cases
D&B Risk Indicator - Company Credit Score Chart
86-100	1	Minimal	15%
51-85	2	Low	35%
16-50	3	Above average	35%
1-15	4	High	15%

Predictiveness - Balancing Risk v Revenues with Credit Scores

Credit Scoring optimises the discrimination between businesses that are most likely to fail and those that do not. This significantly improves the odds of customers making accurate decisions, best balancing risk and revenue opportunities.

Defining the boundary between offering and refusing credit terms is a key aspect to enble balancd credit decisions.

Risk Indicator - Predictiveness & Balance with a Credit Rating Scale

D&B sets the cut-off for refusing credit at Risk Indicator 4

Risk 1,2,3 - extend open credit terms - 85%

Risk 4 (15%)- no "open credit" cash sales pr take assurances to increase revenue at minimal risk.

Credit Rating Scale Chart

The table below shows how the risk Indicator performs in predicting failure lead up events 12 months prior.

Failure Score	% fall in the next 12 months	Volume fail in next 12 months
D&B Risk Indicator - Company Credit Rating Scale Chart
86-100	1	Minimal
51-85	2	Low
16-50	3	Above average
1-15	4	High

Contact D&B to see how Credit Scores and Credit Monitoring can benefit your business.