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Business Credit Score

Business credit score or credit rating is a numeric value that represents the creditworthiness of a customer. Various credit agencies produce credit reports and have their specific credit ratings. Usually, a higher credit score represents a better credit rating and leads to a desired credit limit.

How to check business credit score for customers?

Credit teams extract business credit reports from renowned credit agencies such as D&B, Experian, Equifax. These business credit reports have their credit ratings and the credit teams use these reports and ratings to calculate their internal credit scores.

What is the range for business credit scores?

Business credit scores can exist within a wide range of 0 to 2000. It depends upon which credit bureau’s score your credit team is considering. Let us understand the types of business credit scores and their ranges.

Types of business credit ratings

  • D&B credit score range:
  • D&B’s PAYDEX score ranges from 1 to 100. This score examines your customer’s average time (in days) to pay off a debt. So, if your customer has a PAYDEX score of 89, then that customer is a low-risk portfolio.

  • Experian credit score range:
  • Experian’s Intelliscore ranges from 0 to 100. Experian’s business credit score primarily considers the timeliness of payments. It also examines how a company has handled credit in the past, the average credit utilization, payment delinquency, liens, et al.

  • Equifax credit score range:
  • Equifax assigns three different scores to any customer. The first being the traditional credit score risk (100 to 992), the second is the ‘Payment Index’ (0 to 100), and the last being ‘Business Failure Score’ (1000 to 1880).

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HighRadius Credit Software automates the credit management process, enabling credit managers to make highly-accurate credit decisions 2X faster and enable faster customer onboarding with 4 primary components: configurable online credit application, customizable credit scoring engines, credit agency data aggregation engine, and collaborative credit management workflow. Along with that, there are a lot of key features that should definitely be explored some of which are online credit application, credit information aggregation, automated credit scoring & risk assessment, credit management workflows, approval workflows, and automated bank & trade reference checks. The result is faster customer onboarding, better internal collaboration, higher customer satisfaction, more targeted periodic reviews, and lower credit risk across the company’s customer portfolio.