Commercial Credit Scores
Difference between personal and commercial credit
Commercial credit scoring is concerned with the credit
status of a company or business as opposed to an
It could be argued that the credit score of an individual
who is a sole trader or part of a partnership should influence
the score of the business in which they are involved. Currently
however, privacy and data protection laws prevent an
individual's credit status being accessed by any organisation
other than banks, credit card companies and insurance providers
Commercial credit scores are based on company data available
within the public domain. At ukdata.com we use statistical
analysis to provide a Risk Score. The lower the score the
higher the risk.
By analysing companies over a 12 month period we identified
the key data variables essential in predicting the probability
of a company becoming insolvent within the next 12 month
period. These variables were run against our entire database of
companies and through statistical analysis, an appropriate risk
weighting was assigned to each variable. Through the
calculation of these key variables, combined with current
variables we generate the credit score.
Purpose of a Commercial Credit Score
The Risk Score predicts the likelihood of a company becoming
insolvent within the next 12 months.
Definitions of the Scores
||Very Good Credit Worthiness
||Good Credit Worthiness
||Credit Against Collateral
||Caution - Credit at your discretion
There are other scores detailed in our help page
Variables used to determine a Commercial Credit Score
- Age of Business - A newer company wouldn't be penalised
for it's age, but an older company will have more history to
assist with a calculation.
- Size of Business - Small and Medium sized companies are
scored using a separate calculation to large sized
- Financial Performance - Net Worth, Cash etc is compared
to previous years and with similar sized companies.
- Age of the Accounts - Analysis has shown that small sized
companies who file within the final 15 days of their due date
are almost three times more risky than a company who files in
good time. For large companies No Rating is provided if the
accounts are filed late.
- Ratio Analysis - Return on assets employed etc.
- Independent Auditor Comments - Any adverse comments would
affect the score.
- Director History and Performance - If a director is
associated with companies which are insolvent or have adverse
information this may affect the score. The number of
directors and changes within the management of the company is
- Group Influences - If the company is part of a group, the
companies within the group will also be analysed to look for
adverse information such as insolvency. Such information
would affect the score.
- Demographics - Where the company based may have an affect
on the score if the area has seen an increase in
- Mortgage Data - The amount and number of mortgages
against the company will also affect the score.
- Industry Insolvencies - Analysis across the country and
carried out and adjusted quarterly.
- County Court Judgements - The frequency and amount of
CCJ's affect the score, as do the value of them.
- Filing on Time - Any documents which are over due for
filing at the registry would suggest an increase in