The objective of the SBFE Risk Rating is used to predict derogatory payment behavior in the next 12 months.
The SBFE Risk Rating is calculated by a statistically derived algorithm designed to determine payment risk
based on factors such as trade payments, firmographics, public records, and non-financial trade information.
| Risk Rating | Risk Level |
| 5 | High Risk |
| 4 | Medium to High Risk |
| 3 | Medium Risk |
| 2 | Low to Medium Risk |
| 1 | Low Risk |
DBT
Days Beyond Terms (DBT) is the average number of days a firm pays its bills past the
invoice due date. The color of the predicted DBT is based upon observed norms of
all U.S. businesses:
|
Green for all entries 15 days or less
Yellow for all entries between 16 and 50 days
Orange for all entries between 51 and 90 days
Red for all entries beyond 90 days
|
Note: The DBT norm for all industries is 7 days.
|
80% |
of U.S. businesses have a DBT of 0-15 days. |
|
11% |
of U.S. businesses have a DBT of 16-50 days. |
|
5% |
of U.S. businesses have a DBT of 51-90 days. |
|
4% |
of U.S. businesses have a DBT of over 90 days. |
Predicted DBT
The prediction is a forecast of the DBT for 60 days into the future. It is based on the
trend in DBT, the type of industry of the business, derogatory public record information,
collection accounts, number of inquiries, years in business/on file, and other factors.
Payment Trend Indicator
A method of predicting how quickly future payments will be made based upon
historical payment information.
Balance
The amount of money owed. The exact definition may vary based on the type of information
presented.
Median
The middle value in a distribution, above and below which lie an equal number of values.
Additional information may include:
Trade payment counts
Businesses scoring worse (the number represents the amount of businesses that have a worse score than your company)
UCC filings counts
Tax liens counts
Judgments counts
Collections count
Bankruptcies (types below):
|
Chapter 7
The company stops all operations and goes completely out of business. Bankruptcy
liquidation proceeding in which the debtor's non-exempt assets, if any, are sold
by the Chapter 7 trustee and the proceeds distributed to creditors according
to the priorities established in the code.
Chapter 11
This reorganization provision of the U.S. Bankruptcy Court enables companies
to restructure past-due payments while they continue regular operations in order
to emerge as profitable.
Chapter 13
Allows individuals who have steady incomes to pay all or a portion of their debts
under protection and supervision of the court. Chapter 13 is available only to those
borrowers with regular income who have less than $269,250 in unsecured debts
(such as credit cards) and less than $807,750 in secured debts (such as mortgages
and car loans).
Anyone with greater debts usually must declare bankruptcy under Chapters 7 or 11
of the Bankruptcy Code.
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These are graphical elements showing the company's payment history over time.
Monthly and Quarterly payment history is displayed over time, both in graphical format
as well as with detailed recent activity.
| Monthly/Quarterly Payment Summary: |
Shows the Monthly and Quarterly payment history over time, both in graphical format
as well as with detailed recent activity.
Continuous
A tradeline which has been reported for more than six months.
Newly Reported
A tradeline which has been reported for the first time in the last six months.
Combined
Account balance for combined tradelines. This is the total dollar balance for all new
and continuously reported tradelines.
| Tradeline Payment Information: |
Payment Experiences (Financial Trades):
'Payment experiences' are typically credit card and leasing accounts.
Small Business Financial Exchange (SBFE®) Trades:
The Small Business Financial Exchange (SBFE) data is Experian's newest data source providing the most
comprehensive coverage of small business financial data in the market. Established in 2001, this non-profit
association's database houses information on over 32 million businesses, and enables information exchange
among members (relationships with financial institutions) who provide small business financing.
These members include the top 10 largest U.S. business card issuers and 12 of the top 15 commercial lenders.
Tradeline Experiences (Continuous Trades):
To be considered a 'Continuous Trade' a tradeline must be in the Experian file for
at least six months and updated at least once in the past three months. This section may also contain newly reported tradelines which are those accounts that have been added to the file within the past three months.
Additional Tradeline Experiences (Aged Trades):
'Aged Trades' are those accounts that have not been updated within the previous three months.
| Additional Payment Experiences: |
Payment Experiences (Financial Trades):
'Payment experiences' are typically credit card and leasing accounts.
Tradeline Experiences (Continuous Trades):
To be considered a 'Continuous Trade' a tradeline must be in the Experian file for
at least six months and updated at least once in the past three months. This section may also contain newly reported tradelines which are those accounts that have been added to the file within the past three months.
Additional Tradeline Experiences (Aged Trades):
'Aged Trades' are those accounts that have not been updated within the previous three months.
Inquiries are the number of companies making inquiries on the subject company in the
last 9 months.
Number of open or closed collection tradelines (from collection agencies).
Open collection tradelines are tradelines for which collection agencies are still collecting.
Closed collection tradelines are tradelines that collection agencies have either collected on
or abandoned.
Collections Filings Detail
If the company has Collections listed, then it will show the details associated with
collections that have been reported. These are collections where others are attempting
to collect FROM the company, not collections where the company is attempting to collect
from other parties. The information generally includes the date, amount, and a status
based upon the last report of the collection activity.
Collections Summary
If the company has Collections listed this portion of the report shows a summary of the actual
collections reported. The data is summarized into the status of the collection activity,
with the dollar amounts for items in dispute and items collected.
| Commercial Banking, Insurance, Leasing: |
This includes any information we have available about commercial financial relationships
the company may have with a bank, insurance company, or lessor.
Generally, this information may include the name of the company's primary bank,
insurance companies that have issued policies to it, and the details of leases that have
been reported.
This section shows legal judgments that have been filed against the company.
This section shows activity related to tax liens levied against the company.
The information generally includes: date, filing agency, legal type, legal action,
document number, liability amount, and description. Knowing if a business has a tax lien
will help point out if they are becoming a higher risk due to nonpayment of taxes.
In this situation, the tax agency is taking security of the debt.
Companies that extend secured loans to other businesses file Uniform Commercial Code (UCC)
documents with the appropriate secretary of state office to protect their interest in
the asset. UCC derives from a United States statute covering the rights and obligations
of the various parties involved in the purchase and sale of goods. UCC filings commonly
include the date, filing number, jurisdiction, secured party, and collateral activity.
Cautionary UCC Filings
A Uniform Commercial Code (UCC) filing where one of the following types of collateral
have been pledged:
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Accounts
Accounts receivable
Contracts
Hereafter acquired property
Inventory
Leases
Notes receivable
Proceeds
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Our "Score Improvement Tips" are provided exclusively to Business Credit AdvantageSM subscribers. They are a custom-generated set of helpful suggestions designed to help you improve your business score.
These tips may change based on the current report data (Score Factors), so review them anytime you're alerted to a change in your report.
End of report definitions |
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