What is this company's probability of default?

When looking for efficiency, scoring is the key. The D&B DRS Report, combines all the information on a business in the commercial credit bureau and calculates the probability of default in an easy to read Dynamic Risk score.

*Dynamic Risk Score (DRS) - DRS functions as a fiscal crystal ball, evaluating the probability that a business will experience severe financial distress due to one of the following conditions: ceasing operations, owing money to creditors and insolvency. The DRS evaluates business stability and calculates the probability of default. This statistical analysis uses past behaviour to predict future performance - specifically that a business will experience severe financial distress within the next 12 months. D&B defines Financial Distress as Change of Control (eg Receiver Manager or Administrator appointed) or Forced Business Closure (eg Winding-Up Order, Insolvency or Liquidation).

In addition, it includes the respective credit risk for the industry as a whole, putting the company's score in a meaningful context.

Computed from over 100 predictive factors, including financial, credit and business demographic information, the DRS can simplify complex or risky credit decisions by doing the evaluation for you. Identifying varying degrees of risk, the DRS provides credit recommendations, enabling credit decisioning support at a glance for new accounts or high-value transactions.

Using a statistically predictive credit score like the DRS helps you avoid the pitfalls common to traditional rules-based technology such as bias, dependence on the inventor's knowledge and maintenance difficulties. With the DRS, every factor is analysed bias-free, the results validated for statistical significance and counter-intuitive elements are only included if they prove to be statistically predictive. The result? More confident decisions when they count most.