Credit Scoring

Credit scoring or statistical modeling can be utilized as a method of evaluating the creditworthiness of your customers and assessing the strength and value of your receivable portfolio through the implementation of a formula or set of rules. In fact, statistical modeling can be utilized as a tool that can be applied to many of the components that comprise the entire receivable management process. Testing the creditworthiness of your customer base via credit scoring or a statistical model is by no means a new science, but it is a methodology that has evolved over the last quarter of a century. Today credit scoring is set to become the cornerstone of the receivable management process for the future.