Financial scoring

Financial scoring assesses a customer’s financial strength based on their accounting data: balance sheets, solvency ratios, debt levels, and profitability. These ratings often come from credit reporting agencies or credit insurers.

Example

Before signing a major contract, a company reviews the prospect’s financial report: negative equity and rising debt. It requests a partial payment upon order placement.

Why It’s Important

It allows you to anticipate a risk even before the first invoice is issued. It is useful for new customers for whom you do not yet have a payment history.

Learn more: Customer risk management and Aston AI’s credit management module.

See also: Z-Score, behavioral scoring, credit limit.