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CANADA SCORECARD UPDATE: EVERYTHING YOU NEED TO KNOW

Our strategic partner Equifax Canada is updating the scoring models used to
calculate business credit scores in Canada.

Download documentation



THE NEW SCORECARD LAUNCHES, IT WILL BE REFLECTED IN ALL CREDITSAFE CANADA CREDIT
REPORTS.




THE NEW SCORECARD IS BASED ON TWO SCORING MODELS DEVELOPED BY OUR PARTNER
EQUIFAX – THE BUSINESS FAILURE RISK SCORE AND THE COMMERCIAL DELINQUENCY SCORE.

More predictive and robust insights so you can make more informed decisions

Matches rigorous standards set by Canada’s major banking institutions

Tested using state-of-the-art statistical & modelling techniques for better
accuracy


UNDERSTANDING THE BUSINESS FAILURE RISK SCORE

The Business Failure Risk Score model is based upon the observed characteristics
of more than two million businesses in the Equifax commercial database and the
relationship these characteristics have to the probability of a company
experiencing failure over a period of 12 months.

A business is considered to have failed if it:

 *  Legally becomes bankrupt or is in assignment or receivership with unpaid
   debt or
 * Ceases to operate without paying its creditors even if no legal notice is
   issued

The Business Failure Risk Scoring model assigns a scale of risk from 1,001 to
1,650, where a score of 1,001 represents businesses that have the highest
probability of failure. Meanwhile, a score of 1,650 represents businesses with
the lowest probability of failure. This number provides a direct relationship
between the score and the level of risk.

Sample data elements used in the model include:

 * Small business banking trade payment performance
 * Industry trade payment performance
 * Public record data (suits, liens, or judgments)
 * Inquiry data
 * Firmographic data




UNDERSTANDING THE COMMERCIAL DELINQUENCY SCORE

The Commercial Delinquency Score model helps predict the likelihood that a
company will not pay its non-financial trade accounts in a timely manner in the
next 12 months.

The Commercial Delinquency Scoring model assigns a scale of risk from 101 to
600, where a score of 101 represents businesses that have the highest
probability of severe delinquency. Meanwhile, a score of 600 represents
businesses with the lowest probability of severe delinquency. This number
provides a direct relationship between the score and the level of risk.

Sample data elements used in the model include:

 * Small business banking trade payment performance
 * Industry trade payment performance
 * Public record data (suits, liens, or judgments)
 * Inquiry data
 * Firmographic data


HOW THE NEW SCORING MODELS AFFECT CREDITSAFE’S INTERNATIONAL CREDIT SCORE




THE NEW SCORING MODEL WILL IMPACT THE INTERNATIONAL CREDIT SCORES ASSIGNED TO
YOUR BUSINESS IN CREDITSAFE’S PLATFORM IN THE FOLLOWING WAYS:





WANT TO LEARN MORE ABOUT THE CHANGES TO THE CANADIAN SCORING MODEL?

Learn more about Business Failure Risk Score
Learn more about Commercial Delinquency Score

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