Credit Scores

Our new scores are machine learning and AI based

Credit2B uses machine learning and big data analysis to create highly predictive scores on your businesses. Our two new scores, the 
Payment Outlook Indicator and the Business Viability Indicator predict, respectively, short and long term risk associated with a given business. By leveraging large volumes of data from a variety of sources, including our own trade data, we perform comprehensive analysis to generate the risk scores.

Payment Outlook Indicator


Payment Outlook Indicator predicts near-future (three month horizon) payment behavior. Score ranges from 0 to 100 with lower scores indicating higher probability of severe delinquency, defined as 20% or more of past due amount being over 60 days past terms.

The Score is derived using inputs from trade payment data, extensive amounts of credit bureau data, collections alerts, peer remarks, and more. During model testing, we found this score to be predictive of on-time payments over 84% of the time.

 

Payment Outlook Indicator


Business Viability Indicator

BusinessViability Score predicts long-term (one year horizon) financial stability. Score ranges from 0 to 100, with lower scores indicating a higher likelihood of facing extreme financial distress or bankruptcy within the next 12 months.

The Score is derived using financials, credit agency ratings and other business operations metrics to determine the likelihood the business is financially viable in the long run. During testing, we found this score to be predictive of bankruptcies over 81% of the time. Our scores and confidence levels provide you with data transparency.

 

Business Viability Indicator

Calculated Credit Limit

Our re-designed Calculated Credit Limit (CCL) incorporates a unique approach to credit line recommendations. This line is based on an estimate of the typical order size for that business (based on its scale of operation and buying pattern) and then adjusted using the Payment Outlook Indicator and Confidence1.

In addition, as a trade provider you can also view a Customized Credit Limit that incorporates your own average high credit across all of your customers adjusted by the same Payment Outlook Indicator and Confidence 1.

Customized Credit Limit

For users who upload trade, Credit2B is able to take the Calculated Credit Limit one step further and give you a Customized Credit Limit based on your unique history of extending credit. We use your trade information to assess and apply your credit granting preferences to the Custom Credit Limit you will see. This makes the limit more in line with your business practices and more relevant to your company needs.

Payment Quality Index (PQI)

Payment Quality Index uses our massive, real-time industry trade data. It defines how effectively the business has paid its bills within terms. PQI is measured on a scale of 0 – 100, where the best companies trend in the low 80’s and a value represents the probability that the business will pay within terms (e.g., 70 means 70%). Trade is at the core of what we do. We make it relevant to your industry and timely in delivery. Scores and trending can be used to suggest smaller credit lines, prioritize collection activities, and identify your cash flow opportunity by comparing your customer DSO vs. your industry.

Score Customization

Our credit solutions team can work with you to optimize the scoring parameters and credit line calculations in line with your credit policy, providing guidance throughout the entire process.   Our methodology is based on best-practices acquired over many such implementations. We can also integrate scores in real-time with any enterprise system if needed.

Learn more about our Credit and Financial Risk Scores.

Learn more about our new redesigned Calculated Credit Limit.

Learn more about our Score Validation and Performance Monitoring.

Contact us to see how our advanced scoring methodologies can transform the way you do business.


To request a free consultation:

Call: +1-212-279-3300 or

fill out our contact page

Credit2B