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What is the Delinquency Predictor Score?

Question: What is the D&B® Delinquency Predictor Score?

Answer: The Delinquency Predictor Score (DPS) predicts the likelihood that a business will be severely late in repaying at least 10% of dollars owed, cease operations within the next 12 months without satisfying its debts, or seek legal relief from creditors. Dun & Bradstreet defines a severely delinquent payment as one that is at least 90 days past terms. The DPS is a predictive score, so other businesses might look at your DPS to help determine how likely your company is to pay its bills late.

There are three ways your score can be indicated:

Delinquency Predictor Score: A numerical score between 101 and 670, where a higher number suggests less risk of severe delinquency over the next 12 months.

Delinquency Predictor Percentile: Companies are sorted into a percentile between 1 and 100, where a business in percentile 1 has the greatest chance of struggling with its debt obligations over the next 12 months.

Delinquency Predictor Risk Class: Risk Class ranging from 1 to 5, where a Class 1 business has the least risk of leaving creditors unpaid in the next 12 months.

How is my Delinquency Predictor Score calculated?

To evaluate the potential risk of a business paying in a severely delinquent manner, the Delinquency Predictor Score is calculated using many data points, including the following:

  • Age of the business
  • Industry
  • State
  • Number of employees
  • Number of suits, liens, or judgments
  • Bankruptcy filings or criminal proceedings
  • Availability and age of financial statement data
  • Current Ratio
  • Property ownership
  • Number of payment experiences on the business credit file
  • Number of negative and past due payment experiences

The Delinquency Predictor Score can be calculated without payment experiences, but if payment experiences exist for the business, they will be evaluated.

If your Delinquency Predictor Score or Percentile has declined, or you’ve moved to a higher Risk Class, Dun & Bradstreet has determined that based on information in its Data Cloud, your business is more likely to become severely delinquent on at least 10 percent of its accounts over the next 12 months.

If your Delinquency Predictor Score or Percentile has improved, or you’ve moved to a lower Risk Class, Dun & Bradstreet has determined that based on information in its Data Cloud, your business is less likely to become severely delinquent on at least 10 percent of its accounts over the next 12 months.

How can I help ensure that my Delinquency Predictor Score accurately represents how my business pays its debts?

To help ensure your Delinquency Predictor Score more accurately represents how your business pays its debts, confirm that your public filing data, demographic data, and financial statement information are up to date and that all relevant payment experiences appear on your business credit file.

Delinquency Predictor Score, Class, and Percentile

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