The Risk Score was developed using over a decade of financial data in partnership
with third party consultants and indicates the likelihood of a company failing in
the next 12 months - it scores both Limited and Non Limited Companies.
The Risk Score is based on 400 separate calculations and N2 is the only credit checking
company in the UK to base its Risk Score on the Bank of England's econometric model
of corporate failure.
What is the Risk Score?
Limited / Incorporated Risk Bandings
0 - 10
Extreme Risk!
This company exhibits characteristics similar to companies who have generally failed.
11 - 25
Very High Risk!
This company exhibits characteristics similar to companies who have generally failed
although they tend to be less severe.
26 - 40
High Risk!
This company's Credit Limit should be regarded as an absolute limit and may require
some form of guarantee.
41 - 50
Above Average Risk
Assurances in the form of guarantees may be necessary especially if the Credit Limit
assigned is required to be exceeded.
51 - 60
Average Risk
This company has an average risk status and should be treated with a degree of caution.
61 - 80
Low Risk
There is a high degree of confidence this company will prove good for the assigned
Credit Limit.
81 - 100
Very Low Risk
There is every confidence this company will prove good for the assigned Credit Limit.
Non Limited / Unincorporated Risk Bandings
0 - 10
Extreme Risk!
Extreme Risk - This business exhibits characteristics similar to businesses
who have failed.
11 - 25
Very High Risk!
This business exhibits characteristics similar to those who have a high likelihood
of failure. Advance payment is recommended.
26 - 40
High Risk!
This business is showing early signs of failure. Advance payment or enforceable
guarantees are recommended.
41 - 50
Above Average Risk
Treat with caution and seek assurances in the form of guarantees or advance payment
if the credit limit is exceeded.
51 - 60
Average Risk
This business has an average risk status and should be treated with a degree of
caution.
61 - 80
Low Risk
There is a high degree of confidence this business will prove good for the assigned
Credit Limit.
81 - 100
Very Low Risk
There is every confidence this business will prove good for the assigned Credit
Limit.
Score Codes
Score Flag
Situation
Limit Flag
D
Dormant, non-trading or agent
N - No guide available
I
Insolvency proceedings
N - No guide available
W
Winding up Petition
N - No guide available
Z
Dissolved
N - No guide available
L
Late Accounts / Accounts Becoming Out of Date
N - No guide available
CX
Insufficient Information - Refer to Customer Services
N - No guide available
CA
Insufficient Information - Refer to Customer Services
N - No guide available
N
Insufficient Information Available
N - No guide available
Consumer Credit Scores
0 - 9
N - No guide available
10 - 29
N - No guide available
30 - 39
N - No guide available
40 - 59
N - No guide available
60 - 69
N - No guide available
70 - 89
N - No guide available
90 - 100
N - No guide available
What is the credit limit?
The credit limit should be regarded as a yardstick for the overall level of acceptable
credit, or alternatively, the maximum amount of credit to be extended at any one
time.
What is the contract limit?
The contract limit is the recommended aggregate annual value for supply contracts.
Update Notifications
Update notifications are sent to the My Portfolio on a daily basis for all limited
company reports and non limited business reports saved into your portfolio, please
see the table below for assistance with these updates.
NOTIFICATION RECEIVED
NOTIFICATION INFORMATION
GENERAL INFORMATION
Adverse Information Detected
For Informational Purposes
A score change would then follow this notification
CCJ Added
0 -> 1
The number of current unsatisfied CCJ's
0 = previous number
1 = current number
CCJ Added
0 -> 1000
The value of the current unsatisfied CCJ's
0 = previous value
1000 = current value
CCJ Removed
1 -> 0
The number of current unsatisfied CCJ's once one has been removed
CCJ Removed
1000 -> 0
The value of the current unsatisfied CCJ's once one has been removed
Credit Limit Changed
1700.00 -> 2500.00
Previous Credit Limit followed by Current Credit Limit
Director / Secretary Appointed
- A.N OTHER
New directors/secretary's name
Insolvency Information Detected
For Informational Purposes
A score change would then follow this notification
Internally Instigated Recalculation
For Informational Purposes
A score change would then follow this notification
Name Changed
From -------------- to --------------
Previous name to current name
New Accounts Analysed
20080101
This is the date of the accounts
New Accounts Filed
For Informational Purposes
A further update - new accounts analysed
New Mortgage & Charge(s)
New Mortgage added
Additional Mortgage and Charge added
Registered Address Changed
From 1 THE STREET, THE TOWN, THE POSTCODE
to 66 THE ROAD, THE CITY,THE POSTCODE
Previous address followed by the new address
Risk Score Changed
Risk Score Changed - 81 -> 80
Previous risk score to current risk score
Strike Off Received
For Informational Purposes
The risk score and credit limit is not affected at this stage
Searching for companies in the Channel Islands
Companies incorporated in the Isle of Man, Jersey and Guernsey can be located through the company search screen.
Searching for companies in Northern and Southern Ireland
Northern Ireland - Registration numbers should be prefixed with an NI
Southern Ireland - Registration numbers should be prefixed with an IE or IE0
Where does your data come from?
Our data comes from the various sources shown in the diagram below.
What are the data items within the n2check Comprehensive Report?
Credit Limit
Risk Score - the likelihood of insolvency in the next 12 months
Contract Limit
Company Identification Details
Company Office Details
Mortgages and Charges
Directors Details
Share Capital and Principal Shareholders
Gazette and CCJ Data
Payment Performance Analysis
Company Operations
Company Activities
Auditors
Bankers
No of Staff
Trading Names
Associated Companies
Subsidiaries
Press Coverage
Financial Data
Profit & Loss Statement
Balance Sheet
Financial Ratio Analysis
Year on Year Financial Comparisons
Industry Comparison
What are the data items within the n2check Non Limited Business Report?
Credit Limit
Risk Score - the likelihood of insolvency in the next 12 months
Identification Details
Office Details
Known Contact
County Court Judgements (if any)
What are the data items within the Directors Report?
Personal Details - Name, Address and Occupation
Nationality and Date of Birth
Live Directorships Held
Dissolved Company Directorships Held
Resigned Directorships
What is a Keep It Live! Report?
Keep It Live! will benefit all organisations that have their own internal credit
management function. Keep It Live! allows clients to have unlimited access to credit
reports on a single UK Limited Company.
What are the Benefits of Keep It Live!?
Enables clients to save time and money, whilst having real time access to external
events affecting the credit worthiness of their clients that may be impacting their
trading relationship.
Both positive and negative changes in credit limit are notified to clients, allowing
for up-selling as well as risk management and control.
Assisting clients in focussing the analysis of your client base.
Maximises efficiency in customer life-cycle management.
Clients don't have to take a credit report to see the change - easy
to identify changes.
Increased profitability through reduced bad debt
Do you offer International Reports?
Yes, we provide immediate online access to over 139 million reports from more than
200 countries. Should a report not be available immediately an investigation can
be placed.
RISK INDICATOR
The D&B Risk Indicator is delivered on all International reports and reflects our
opinion of the risk associated with trading with a specific business – notably the
likelihood of business continuance or failure over the next 12 months.
The risk indicator is generally displayed as "-" or a rating of between 1-4, indicating
the probability of failure.
Risk Indicator*
Meaning
Guide to Interpretation
1
Minimal risk
Proceed with transaction - offer extended terms if required
2
Low risk
Proceed with transaction
3
Slightly greater than average risk
Proceed with transaction but monitor closely
4
Significant level of risk
Take suitable assurances before extending credit - e.g. personal guarantees
--
Insufficient information to assign a risk indicator
No public information or D&B proprietary information available to assign a valid
risk
*Note: The Risk Indicator is valid in conjuntion with all Financial Strength Indicators
with the exception of the NQ notation.
FINANCIAL STRENGTH INDICATOR
The financial strength indicator is determined by the latest Tangible Networth and
provides an indication of the strength behind the business to cope with adverse
trading periods or exploit investment opportunities. The D&B Failure Score predicts
the likelihood that a company will obtain legal relief from its creditors or cease
operations with unpaid obligations over the next 12 months.
(scored out of 100)
AAA RATING FOR DENMARK, FINLAND, NORWAY AND SWEDEN
A separate rating system is presented on International reports from Scandinavian
countries. The "TripleA" system is highly predictive and uses the same guiding principles
as the Risk Indicator. The AAA system assimilates financial strength and risk indicators
into an alphabetic only rating presentation.
Denmark, Norway, Sweden, Finland
Equivalent D&B Risk Indicator
Triple A Rating
Description
Guide to Interpretation
AAA
Highest Credit Worthiness
Excellent Company. Very good capacity for meeting payment liabilities.
1
AA
Good Credit Worthiness
Good capacity for meeting payment liabilities.
2
A
Credit Worthy
Sufficient capacity for meeting payment liabilities.
3
AN
Newly Formed
New company with no significant information.
3
B
Credit Risk
The financial capacity of the company seems weak. Security is advised.
4
D&B Maximum Credit
D&B’s Maximum Credit shows the total value of goods and / or services the “average”
creditor should have outstanding at any one time. In the Business Information Reports
this is summarised as the maximum amount on monthly open credit terms. It is not
necessarily the maximum the organisation could afford. It is calculated using:
Organisation Size•
Based on turnover, total assets, tangible net worth or number of employees.
Industry*
Based on the SIC Code.
Risk Factor*
Banded segments of the Failure Score linked to the risk of failure.
D&B Failure Score
The D&B Failure Score predicts the likelihood that an organisation will obtain legal
relief from its creditors or cease operations over the next 12 month period. The
Failure scorecard also looks for events signalling the onset of failure, such as
a meeting of creditors, administrator appointed, bankruptcy, receiver appointed,
and petition for winding-up amongst other legal events. The Failure Score makes
risks visible, allowing you to reduce your bad debt and identify profitable opportunities
– it also improves objectivity and consistency.
D&B Delinquency Score
The D&B Delinquency Score predicts the likelihood that an organisation will pay
its bills in a severely delinquent manner over the next 12 months.
Delinquency is defined as an organisation that, according to Trade Experiences collected
by D&B, has less than 75% of Trade Experiences paid within terms and more than 10%
paid 90+ days late. The table below shows the countries in which D&B are able to
provide a Delinquency Score.
What other services can you provide?
Our high technology levels mean that we can deliver:
Predictive models
Customised reports
Dedicated websites
Data delivery using XML tagged data
Bespoke commercial scorecards
Automated decisioning tools
Country Risk
What is the average time taken to deliver a Full Report?
We believe in assessing your business needs, coming up with solutions and then pricing
them to deliver benefit to your business. If you have a current supplier of credit
information, we are confident that we can save you money. For a quote, please contact
tim.shatliff@n2check.com.
