Scorecard User Guide Belgium

All information, questions and answers about the scorecards of Belgium in one place

Welcome to the dedicated webpage with the user manuals for the new Belgian scorecard

On this page, you will find practical information about the (new) Belgian Scorecard. Our goal is to support you as much as possible with relevant content, instructions and manuals so you understand how the Belgian scorecards work. 

Below is an overview of what you can find on this page.

We hope that this page can further support and assist you. If you still have questions or comments, you can always contact our Customer Success team via the link below.

Scorecards Belgium

General Scorecard Guide

Technical Summary

How To booket - User Manual

Frequently Asked Questions

Each year, hundreds of millions of business decisions are based on data insights from Creditsafe. Our credit scores and limits are used by companies of all sizes within multiple industries to make fast and informed decisions, automate workflows and guide strategic direction.

As a result, we have invested millions of Euro’s in enhancing the scorecards across the Creditsafe group, including the Belgian scorecard. We are extremely pleased to share with you the outcome of the Belgian scorecard enhancement, which predicts more accurately business failures than before.

Download the general guide here.

An overview of the most important elements in this document:

  • What is a scorecard?
  • The Creditsafe scorecards
  • Segmentation of the Belgian business population
  • Why update the scorecard?
  • How the Belgian business landscape is changing
  • The power of the renewed Creditsafe Belgium scorecard
  • What is the definition of Failure?
  • The Probability of Default behind each score

Creditsafe is continuously working on improving its credit scores, using the latest knowledge in the field of statistical scoring methods and optimizing and maximizing the deployment of the ever-expanding database. 

This enables more and more relevant data from different processes and ensures that Creditsafe is utilising the most up to date and relevant information available for the Belgian market. By this, the way companies are scored is improved making better and more predictive assessments about a growing number of companies, even in cases where less information is available.

Discover all the technical aspects of Belgium's new scorecards using the link below.

An overview of the most important elements in this document:

  • Generic Scorecard Overview
  • Scorecards and segmentation
  • Individual PoD
  • Summary of results
  • Gini coefficient
  • Data preparation and population design
  • Scorecard Development
  • PoD Table

An all-in-one document, so you can fully understand the story and the logic behind the renewed Belgian scorecard.

This new document aims at informing you as completely as possible about the changes, the new elements, the technicalities explained and the essentials to know. You will notice that this contribution will repeat some of the topics from previous, shared content, which is of course intended to keep you as well informed as possible.

This document is ideal for all Creditsafe users so you can review and understand the scoring approaches. Get your copy via the link below.

An overview of the most important elements in this document:

  • Why renew the Belgian scorecard?
  • What is a scorecard?
  • Data preparation and population design
  • Scorecard segmentation
  • The Probability of Default
  • The Gini coefficient and its predictive power
  • Scorecard development
  • The Creditsafe scorecards
  • What are the advantages of the Creditsafe scorecards?
  • Company Score Migration Matrix
Why are Creditsafe changing its scorecards?

It is perfectly normal for Credit Reference Agencies to review and update their scorecards with changes in the economic climate and available data. As new information becomes available, we must seize the opportunity to utilise this data and improve predictability further.

We must also be vigilant in tracking marketplace trends and make sure that our predictive models are reflective of current developments. With constant changes to economic, social and political climates, some of the indicators that are predictive of failure today are likely to change in the years to come.

Creditsafe continually enhance our scorecards to reflect the current risk factors that have emerged within the local economies. Assessing the entire business population, we have refined and confirmed what indicators commonly hold for commercial stability, and what is predictive of a company heading into difficulty.

Are all companies scored with the same algorithm?

No, depending on the type of company, the size and the country, the algorithm is adjusted.

Why is the Probability of Default important?

The PoD will ultimately tell you exactly how stable any company is and more importantly, what the associated risk of trading with it is.

The Creditsafe scorecard provides a score between 1 and 100 for the highest and the respectively lowest risk. This scale is produced based on the outcome of the PoD, expressed as a percentage. The higher the Creditsafe credit score, the lower the PoD percentage and vice versa.

The development of the new model and the new PoD table means that it would be wrong to compare scores on a like-for-like basis. The underlying statistics have changed, the scoring model has changed and as a result, the meaning of the scores from 1 to 100 has changed.

This may result in a company receiving a lower score than previous on the 1-100 scale but the associated risk of this company defaulting or failing will be lower. Therefore, a company’s score can drop from 70 to 60 but for its credit limit to increase at the same time because the associated risks with the company are lower.

It is important to note that this does not mean that all company scores will drop, as some companies will be scored higher than previously. However where score drops are noticed, the changes in PoD's need to be referenced.

Why has my credit score (and limit) and those of my customers and suppliers changed?

At Creditsafe we are fortunate to have an extensive and ever growing database of up-to-date company information. As we expand and increase the wealth of data we hold, we must evaluate whether this new data contains information that is indicative of company stability or future insolvency. We must also re-validate whether previous indicators in existing data remain true. In both cases, it is likely that additions and adjustments to the scorecard will be needed to ensure high predictability.

Therefore, when a new scorecard is amended, there will inevitably be some shifts in the business credit score and the recommended credit limits. We should also not forget that the probability of default has become an important and compelling element in the updated scorecard, resulting in a new score indication for many companies.

What does the score predict?

Creditsafe’s scorecard calculates the probability that a business will fail over the coming 12 month period. The calculation is converted into an easy to understand score between 1 (highest risk) to 100 (lowest risk). We consider a business below 30 to be high risk and therefore uncreditworthy, where as a business with a score above 51 would have a lower risk of failure

Creditsafe considers the following criteria to be the definition of failure:

  • Initiation of bankruptcy proceedings with excusability
  • Initiation of bankruptcy proceedings with inexcusability
  • Initiation of bankruptcy proceedings
  • Completion of bankruptcy proceedings with excusability
  • Completion of bankruptcy proceedings with inexcusability
  • Completion of bankruptcy proceedings
  • Stay of proceedings (judicial reorganisation)
  • Judicial winding-up or nullity
What is the Probability of Default (PoD)?

The Probability of Default (PD or PoD) is a mathematical calculation that shows how likely it is that a company will fail or become insolvent within 12 months of the date of application for a particular credit.

Creditsafe’s scorecard provide a score between 1 and 100 representing the highest and lowest risk respectively. This scale was produced using the probability of default (PoD) output.

The PoD is a simple representative way for companies to accept, modify or even reject credit applications. This probability can be applied to a wide range of scenarios for risk management and credit analysis. The PoD depends not only on the characteristics of the debtor, but also on its economic environment.

With the launch of the new scorecard, the Creditsafe score will be accompanied with a PoD. We calculate the PoD for each company individually based on their combination of characteristics. To make the PoD easy to read at a glance, we convert it into a simple score, which runs from 1 (highest risk) to 100 (lowest risk).

How do I know if the new scorecard is suitable for my business?

The Creditsafe scorecards are built to assess the entire business population of the country in question, utilising Creditsafe owned data as well as third party data.

Our assessment of this data produces a score which reflects the likelihood of business failure within the next 12 months. In addition, the Limit Solution is designed to offer a recommended maximum amount of credit to be extended to this business based on numerous financial factors. 

Our scorecards are built to compliment any business, however, we do also offer bespoke analytical services. Naturally, all businesses have unique business models, strategies and objectives. In order to help businesses gain greater clarity over their commercial landscape and opportunities, our world-leading analytical team have been commissioned to build a number of bespoke analytical models for companies in many countries.

For further details on our bespoke services please reach out to your dedicated account manager.

Why are there new scoring bandings?

The reason for doing so is that we want to create a certain uniformity, based on the international rating, in all Creditsafe entities where a new scorecard has been launched.

In both Germany, UK, Sweden, Netherlands and France, for example, the international D rating varies between their local 29-39 score. Similarly, we have a risk level of around 3% around the threshold between C and D in all new scorecards developed since 2018.

On the other hand, we understand the impact that trust can have on a company's growth. Whether it is the confidence to seize new opportunities or the confidence to reject opportunities that may harm your business in the long run. Therefore, we want to make sure that, on the one hand, there is more room for commercial opportunities. And, of course on the other hand, that there is an even more accurate prediction of credit risks.


General Scorecard Guide
Technical Summary
How To booket - User Manual
Frequently Asked Questions