The Creditsafe Scoring Model combines key commercial, financial, and demographic information, such as trade payment information, public information, key financial ratios, industry sector analysis and performance indicators, to create highly predictive scores.
Understanding the Model
What does the Creditsafe Scoring Model predict?
How was the Creditsafe Scoring Model created?
What does the Creditsafe Scoring mean?
What does the Creditsafe Ranking mean?
What are the Creditsafe Scoring Bands?
What factors are considered when scoring a company?
Our model uses many sources, including demographic and payment data to determine a company’s score. Just some of the factors include:
- Previous bankruptcy
- Number of employees
- Age of the company
- Legal Filings
- Payment History
What is a credit limit?
The credit limit is our recommendation of the total amount of credit that should be outstanding at one time.
It is estimated using the ‘Risk Weighting’ and key balance sheet figures for companies that file accounts; or using other non-financial information for companies which do not.
What is a maximum credit limit?
The maximum credit limit for companies is determined by these factors:
- For a Public Limited Company (PLC) scored 30 and above: $50m
- For a non-PLC company scored 30 and above: $1m
- For all companies scored below 30: $0
How do we define a “failed” company?
Creditsafe considers the failure of an organization as going 90-plus days beyond terms within the next 12 months or that the business will go bankrupt.
Questions about our credit model?
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