What is a business payment score?

As part of a Credit Reference Agency’s determination of a credit score, they receive millions of trade payment experiences on a monthly basis from companies operating in a broad variety of commercial sectors in order to analyse the payment performance of companies.

Invoice Paid

Changes in payment performance constitutes one of the earliest signals of possible financial difficulty and understanding the payment performance of a company will give you an indication as to when a company will pay it’s bills.

At CreditHQ, we convert payment scores from Credit Reference Agencies into a payment indicator which uses 1-10 scores and colours to indicate high (red), medium (orange), or low (green) risk of late payment.

If you know the likelihood of a company paying on time then you are able to make decisions on when to chase debt and adjust your cashflow projections to reflect real-world information rather than standard payment terms.

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