Three Dun & Bradstreet predictive credit scores, the D&B delinquency
predictor score predicts whether a business will pay its bill on time, it
actually predicts the likelihood that a business will make a severely
delinquent payment, D&B defines severely delinquent as 91 days or more past terms,
so basically someone is severely delinquent when they pay more than 90
days late,
the true definition from D&B is delinquency predictor score predicts the
likelihood of business will pay severely delinquency within the next 12
months.
The D&B predictor score ranges from 101-670, the higher the score the lower
the risk, the D&B delinquency predictor scores is further broken down into 5
classes, class 1 reflects a low risk of late payment. Class 5 reflects a high
risk of late payment. The D&B predictor score is influenced by D&B’s data
regarding past payment performance, demographic information,
financial information, outstanding lawsuits and liens. The D&B predictor
score is used by suppliers customers and banks, the score is used to make
decisions about your company, for example lower risk delinquency predictors scores
means you have a better chance of securing credit with suppliers. Suppliers,
customers, and banks can not only pull this score but monitor it ongoing, and
they can even receive alerts of changes such as when the score moves between
risk classes so a supplier would be alerted if the score changes and then
could pull back extended credit even if the late payments were with others not
that specific supplier, suppliers, banks and customers would make this decision
to pull back credit due to increased and changed risk from the initial
application Dun & Bradstreet’s financial stress predictor score, D&B
financial stress score
predicts whether a business will experience financial distress or failure.
The true D&B definition is the financial stress score is used to predict the
likelihood that a company will obtain legal relief from creditors or cease
operations without paying all creditors in full over the next 12 months. The
score ranges from 1001-1875, the higher the score the lower the risk, the
D&B financial stress score if broken into 5 different classes. Class 1
reflects a low risk of late payment while class 5 reflects a high risk of
late payment. This score is influenced by details D&B has regarding your, past
payment history, demographic information,
financial information, outstanding lawsuits and liens. Potential business
partners, banks, other lending institutions, and customers use the D&B
financial stress score to determine if you will have the financial resources to
handle your expenses for example a company hires a consulting business for
a 10 month project, a high financial stress score could be used by the
consulting business as justification to extend terms to the company instead of
requiring upfront payment. Dun and Bradstreet’s supplier evaluation risk
rating, Dun & Bradstreet supplier evaluation risk rating is known as the
SER rating, the SER rating also predicts the likelihood that a supplier
will cease business operations or become inactive over the next 12 months, it
predicts whether your company will deliver goods and services as promised,
it predicts the likelihood that a business will stop delivering their
goods and services,
scores range from 1-9, the higher the score the higher the risk. You
SER ratings is influenced by D&B data including past payment performance,
demographics, financial information,
outstanding lawsuits and liens. Vendors suppliers
and other business partners use the SER rating to reduce the cost and
risk of choosing suppliers and to gain competitive advantage, for example let’s
say a company is choosing a building supplier and needs to deliver their
product quickly while considering many suppliers the company chooses the one
with the best SER rating as they believe that company can deliver quickly
and on short notice.