Friday, 7 October 2011

How does Calculate Risk Score

We’ve had a few enquiries this week wanting to know about how the risk scores are calculated. We do have some pretty extensive help pages on at but just to answer this specific question, here’s what we do.

Companies are analysed over a 12 month period, hence why for newer companies we can’t always append a credit score. The below listed variables are run against our entire database of companies.

  • Age of Company
  • Company Size (separate calculations are used for SME’s and large PLC’s)
  • Financial Performance (figures from Companies House)
  • Age of Company Accounts
  • Ratio Analyses
  • Auditor Comments
  • Director History
  • Group Influence (if company is part of a group)
  • Demographics
  • Industry Insolvency Trends
  • Number, Value & Frequency of CCJ’s
  • Time Critical Filings

We are then able to assign an appropriate risk weighting and through statistical analyses generate the credit score.

Given the current economic climate, we are now applying SIC code insolvency statistical analyses to ensure successful businesses in certain sectors maintain their credit score.

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