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Equifax’s Commercial Credit Scores

Published By Credit Suite at August 20th, 2016

Equifax’s main business credit scoring model is the Credit Risk Score. This score was created to predict the probability of a business customer becoming seriously delinquent on supplier accounts, or bankrupt, within a 12-month period.

Credit scores range from 1-100, with a lower score indicating a higher risk of serious delinquency.  By definition the score predicts the likelihood of a business incurring a 90-days severe delinquency or charge-off over the next 12 months.

Scores of 90 and above express that obligations are being paid as agreed, while scores from 80-89 indicate payments are being made 1-30 days overdue.

Scores of 60-79 represent payments being paid 31-60 days past the agreed-upon due date, while credit scores between 40-59 indicate payments being made 61-90 days overdue.

Scores between 20-39 mean obligations are being paid 91-120 days overdue, while scores between 1-19 mean obligations are being paid 120+ days past the due date.

Equifax also provides a business credit score for suppliers known as the Small Business Credit Risk Score for Suppliers. This model is designed to help credit grantors improve their risk assessment and reduce delinquency rates while helping to improve profitability.

The score utilizes unique bank loans, lease information, credit card data, and supplier, Telco and utility credit history, public records and firmographic data from their own Equifax Commercial database.  The Small Business Credit Risk Score for Suppliers credit scores range from 101-816.

Equifax also offers a Business Failure Risk Score with many reports.  This Risk Score predicts the likelihood that the business will fail or file for bankruptcy within the next 12-month period. This model helps identify businesses that pose a greater risk for failure so that suppliers and credit grantors can take appropriate actions.

These are the main business credit scores you will often see from Equifax, and now you know how they work and what they represent. Check out the video below for more information regarding Equifax’s commercial credit scores.

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