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Business Credit Scores and Ratings

Changes to a Business’s Delinquency Predictor Score

Has Your Delinquency Predictor Score Recently Changed?

Has your business’s Delinquency Predictor Score (DPS) recently changed? Vendors, financial institutions, and landlords are just a few of the partners who may check this score when making decisions about a business. In other words, changes to the score can impact your bottom line.

The DPS is a proprietary metric designed to assess the likelihood that a business will be severely late in repaying at least 10 percent of dollars owed, cease operations within the next 12 months without satisfying its debts, or seek legal relief from creditors. Using Dun & Bradstreet’s business information database, the score can help companies and organizations manage risk without having to conduct extensive research of their own.

We’ve created the infographic below to help business owners familiarize themselves with the DPS.

Understanding Your Delinquency Predictor Score

There are three ways your score can be indicated:

  • Delinquency Predictor Score (DPS): A numerical score between 101 and 670, where a higher number suggests less risk of severe delinquency over the next 12 months.
  • Delinquency Predictor Percentile: Companies are sorted into a percentile between 1 and 100, where a business in percentile 1 has the greatest chance of struggling with its debt obligations over the next 12 months.
  • Delinquency Predictor Risk Class: Five risk classes (1 to 5), where a Class 1 business has the least risk of leaving creditors unpaid in the next 12 months.

If your Delinquency Predictor Score or Percentile has decreased or you’ve moved to a higher Risk Class, Dun & Bradstreet has determined that based on information in its database, your business is more likely to become severely delinquent on at least 10 percent of its accounts over the next 12 months.

If your Delinquency Predictor Score or Percentile has increased or you’ve moved to a lower Risk Class, Dun & Bradstreet has seen indications that your business is less likely to become severely delinquent on at least 10 percent of its accounts over the next 12 months.

How Are These Values Calculated?

Dun & Bradstreet uses predictive modeling analysis to make informed decisions about the likelihood that your business will become severely delinquent on its accounts. These models rely upon data Dun & Bradstreet regularly collects about businesses, including Trade References*, public filings, and financial statements.

What Does It Mean to Be Severely Delinquent on Business Debts?

Dun & Bradstreet considers a company to be severely delinquent when it is 91+ days overdue on at least 10 percent of its debts.

How Can I Impact My Delinquency Predictor Score?

Dun & Bradstreet bases its business credit scores and ratings on information it collects about companies. Because missing data can’t be factored in, it’s important for business owners to verify company details and to submit Trade References for consideration.*

Company Update is a free tool that allows a business to confirm its basic business information, while CreditBuilder Plus provides unlimited access to your company’s Dun & Bradstreet credit scores and ratings. Understanding the Delinquency Predictor Score and taking steps to manage your business’s credit file can help you avoid unwelcome surprises when it comes to your company’s credibility.

 

*Trade References will be added subject to Dun & Bradstreet verification and acceptance. Trade References are counted as fulfilled when a qualified reference is successfully added to your report. Please see the Trade References glossary page for eligibility, process, and other information regarding Trade References.

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