New Company Credit Rating Model from Creditsafe now Enhanced with Payment Behaviour Data
- More than 88 million trade payment experiences enhance new model and further improve accuracy of predicted insolvencies
- New rating model demonstrates Creditsafe’s mission to create the world’s leading trade payment database
Creditsafe, the world’s most used provider of company credit reports, announced today that it has developed an enhanced ratings model that will encompass more than 88 million trade payment experiences. The new model provides Creditsafe’s customers with the most accurate view in the industry of businesses’ financial health and propensity to enter insolvency in the next 12 months. It will also provide increased credit limit recommendations whilst still remaining endorsed by all major credit insurers.
The Creditsafe rating model is a highly predictive analysis tool that uses the latest statistical algorithms. It combines commercial and other key information including trade payment information, public information, financial ratios, industry sector analysis and other performance indicators to create a powerful insight into whether a company is likely to fail. Creditsafe runs a range of scorecards including those for large, medium, small, newly established and non-limited companies to improve accuracy.
Creditsafe’s analysis identifies a risk score for an organisation, which can then be used by businesses to set trade credit levels for potential customers or suppliers. Creditsafe’s solution is now increasingly used beyond credit management processes to support decision making across businesses. Creditsafe is regularly used across departments such as sales; fraud prevention; marketing and finance to negate risks across the customer lifecycle.
Since the model was first developed, Creditsafe has continuously improved its accuracy by including more variables, indicators and data. Creditsafe took the decision to create this latest version as a result of the improving economic situation and also because it now has a critical mass of trade payment data collected from a range of sources, from Small to Medium Sized Enterprises (SME) right up to blue chip companies, with a large proportion of this data sourced through Creditsafe’s innovative 3D ledger product.
Chris Robertson, UK Managing Director Creditsafe said: “Creditsafe is dedicated to improving the transparency of payment information that enables better business decision making. For the past few years we have collected payment data from large organisations right down to micro enterprises, to establish a true picture of inter business payment trends. This helps to create an even more accurate view of a company’s financial wellbeing. A slowdown in payments is generally an indicator that a company is in trouble and this can be built into our predictive model.
“Our new enhanced ratings model has been tested extensively to ensure it is accurate and will be applied to all companies on our database by 24th August, 2014. We will continue to look for more opportunities to improve our credit rating as more data is shared and made publicly available.”
The Creditsafe Group is the world’s most used supplier of company business intelligence with 10 Creditsafe Group reports downloaded every second.
Privately owned and independently minded Creditsafe is looking to change the way business information is used by providing high quality data in an easy to use format that allows everyone in an organisation can benefit from.
Launched in Norway in 1997, Creditsafe has offices in the UK, Germany, France, Sweden, Ireland, Italy, Belgium, the Netherlands and the USA employing over 800 people and has more than 80,000 customers, across the Group.