New D&B Viability Rating Comes to BCR

BCR recently added D&B's Viability Rating as an add-on to our report lineup. A standalone Viability Rating report will be made available in the coming days. The Viability Rating is a new analytic tool that offers a comprehensive assessment of whether a company will still be in business in 12 months. The Viability Rating combines a Viability Score, a Portfolio Comparison, a Data Depth Indicator and a Company Profile rating to deliver a single indicator of a company's viability.

While other scores target specific problems like getting paid on time or likelihood of bankruptcy, the Viability Rating helps to answer general credit decision questions like:

  1. Is the business viable?
  2. What are the growth prospects of this business?
  3. Do I want to establish or continue a relationship with this business?
  4. Is there enough data on this business to make an intelligent decision?

There are four components of the Viability Rating:

The Viability Score assesses the probability that a company will no longer be in business, within the next 12 months, compared to all U.S. businesses within the D&B database. Going out of business is defined as:

  • Voluntary or involuntary close of business
  • Becoming dormant or inactive
  • Filing for bankruptcy

The Portfolio Comparison assesses the viability of a company, compared to similar businesses, within the same model segment. The type of data used to classify these segments is:

  • Available financial data
  • Established trade payments
  • Limited trade payments
  • Firmographics and business activity

The Data Depth Indicator presents the level of predictive data available on a business that was used to score its viability. Data depth includes how much business intelligence is known about a business based on the availability of predictive information such as:

  • Commercial trading activity
  • Financial attributes
  • Firmographic data

The Company Profile examines how established a company is based on a combination of categories including
financial data, trade payments, and demographics on the different categories within the profile include:

  • Financial data
  • Trade payments
  • Years in business
  • Company size (number of employees or sales)

The D&B Viability Rating provides at-a-glance, comprehensive insight on customers and prospects. To learn more, please contact your BCR representative. They’ll be happy to share the details of this new analytic tool and how your business can benefit from using it.