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Supporting society by enabling trade during Covid-19 requires trust and real-time data.
Covid-19 is here – right now and for the foreseeable future. People will recover and our societies will need to recover – rapidly.
Data & analytics companies have an essential role to play in this recovery. Together we must take our responsibility to help society move forward. The need for updated real-time credit data is more important than ever. We need to enable trade - not hinder it - and one way forward is to use credit scoring.
Credit scoring is much more than history
A common misconception is that credit scoring is only based on historical data. Of course, that data is still valid; businesses with solid finances have a greater likelihood of surviving the impact of Covid-19. However, credit scoring is much more than history. Take these examples: every 15 seconds there is a change in payment behaviour, every minute a payment remark is registered, every 5 minutes a business fails - but another is started, and every 15 minutes a company changes ownership.
For years, Bisnode have collected this kind of up-to-date payment information from thousands of companies – a measure of true payment behaviour, based on actual and non-public payment information. We will keep on taking our responsibility, giving you access to all this data, no matter what. So long as you promise to use it to enable trade, not hinder it.
Together. We can.
Scorecards based on data, not gut feeling
Credit scorecards are the best predictors of potential defaults or delinquencies, even in more uncertain times when risk levels are higher than usual. Businesses with low risk and good finances are much more likely to weather the impact of any crisis.
We keep a close eye on the development of Covid-19 and how it impacts the business environment and more specifically risk assessment.
Our approach is, as always, data-driven and we wait before making any adjustments until real data becomes available. We remain hesitant to adjusting scores manually since we might accelerate the rate of decline, rather than manage the risk. In other words, we do not increase risk levels based on gut feeling.
We also monitor the situation daily, by industry and market, and we collaborate very closely with our global partner, Dun & Bradstreet.