Published By Credit Suite at November 30th, 2015
Dun & Bradstreet is the primary company used to evaluate business credit. They issue a credit score known as PAYDEX. But there are also other companies that provide similar credit evaluation services to businesses. So these come from their independent databases. Consider the Equifax Small Business Credit Risk Score.
One of them is Equifax who offers a business scoring credit model. The CRA calls it the Equifax Small Business Enterprise/ Equifax Small Business Credit Risk Score.
Equifax is one of the three major consumer credit rating bureaus. So, it is now providing business credit evaluations for over 22,000,000 small businesses and corporations. Hence the idea is to detect early signs of trouble. They do so by monitoring key customers, suppliers & partners.
Equifax’s model is for companies that provide goods and services to small businesses.
The score was created to enhance risk assessment throughout the account life cycle. It does so by predicting the probability of a new or existing small business customer becoming seriously delinquent on supplier accounts. It is also for showing if a business will go bankrupt. So both are within a 12 month period.
Credit scores range from 101 – 816 with a lower score indicating a higher risk for serious delinquency.
There are also four reason codes. So these show top factors that impact the credit score for a better understanding of risk.
Equifax does provide both consumer and business credit risk models. But there are considerable differences between the two.
So, pay attention to your scores.
For your business, all scoring matters. One of the ways you can consistently help your cause is by paying your bills early. Business credit payment history matters more than anything else.
No payment history? Then build fundability.