Dun & Bradstreet is the primary company used to evaluate business credit and issue a credit score known as Paydex.
There are also other companies that provide similar credit evaluation services to businesses based on their independent databases.
One of them is Equifax who offers a business scoring credit model knows as Equifax Small Business Enterprise/ Equifax Small Business Credit Risk Score.
Equifax, one of the three major consumer credit rating bureaus, is now providing business credit evaluations for over 22,000,000 small businesses and corporations to detect early signs of trouble by monitoring key customers, suppliers & partners.
Equifax’s model is designed for companies that provide goods and services to small businesses.
The score was created to enhance risk assessment throughout the account lifecycle by predicting the probability of a new or existing small business customer becoming seriously delinquent on supplier accounts, or bankrupt, 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 which indicate 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.
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