The scoring model and credit limit system on our database, FAME, is more predictive system which incorporates recent economic data (2010- 2013) and credit scoring analytics. The credit score measures “the likelihood of company insolvency in the next 12 months” which is then transformed into a credit limit based on the financial strength of the target company. The credit limit recommends “the total amount of credit outstanding at any one time on the target company” that is based on a portfolio of 3,833,672 companies covering:
- Group, Full accounts and Medium sized companies
- Small companies
- Total exemption full
- Total exemption small
- Balance sheet
Each development sample was statistically analysed to determine the most predictive parameters to be used in each scorecard. The final credit limit is obtained after adjusting the initial credit limit according to the financial health and default risk of a Company. Scores and limits are market leading based on more recent economic data statistics and analytics so is judged more predictive and accurate than the previous model. New parameters in the scorecard include:
- Directors history and associate interest performance
- Auditors qualification
- Improved CCJ analysis
- New treatment of negative
- Shareholders funds
- Improved financial ratio analysis
There’s also a webinar from Ray Ruffels (who might sound like an airline pilot making an announcement) who is the Director of Information at Jordans.