The Creditsafe Scorecard is a proprietary risk model developed by Creditsafe’s in-house Analytics team. It delivers a reliable, predictive measure of a company’s financial stability and creditworthiness. Built using comprehensive global data and advanced statistical techniques, it underpins Creditsafe’s credit risk assessments across more than 200 countries and territories.
What Is a Creditsafe Scorecard?
A Creditsafe Scorecard is a predictive model that calculates the likelihood of a company becoming insolvent or defaulting on its obligations, typically within a 12-month horizon. It transforms hundreds of data points into a single risk score, enabling faster, smarter credit decisions.
Scorecard Development
The development process of a credit scorecard follows a structured methodology designed to ensure high predictive accuracy:
- Population Design: Defining a relevant sample of companies and determining what constitutes a 'bad' (i.e., insolvent) company based on local legislation.
- Characteristic Analysis: Evaluating hundreds of variables (such as financial ratios, payment behaviour, and company age) and selecting only those with strong statistical significance and logical correlation to default.
- Modelling Methodology: Creditsafe uses Stepwise Logistic Regression (SLR) to identify and combine the most predictive characteristics.
- Characteristic Selection & Business Logic Validation: Ensuring statistical robustness while eliminating irrelevant or misleading variables through p-value and chi-square analysis, along with economic logic checks.
Types of Credit Scores Provided
Domestic Score (1–100)
- A numerical scale where the levels of risk are indicated as:
- 1 the highest level
- 100 the lowest level
- 1 the highest level
- Typically used in national credit reports
International Score (A–D)
- A letter-based system designed for cross-border comparability
- Risk bands:
- A – Very Low Risk
- B – Low Risk
- C – Moderate Risk
- D – High Risk / Use Caution
Probability of Default
Every company is also assigned a Probability of Default (PD). It is a percentage estimate of the likelihood that it will default or go insolvent within 12 months.
It combines multiple predictive indicators into one percentage-based risk measure. To support varied use cases, the PD is expressed in three formats:
- A numeric score (1–100)
- A risk class (A–E)
- A traffic light risk indicator
Country-Specific Models
Creditsafe tailors its scorecards to reflect the realities of each local market. This localisation ensures that scores are relevant, meaningful, and highly predictive.
For example:
- Netherlands: credit scores place significant emphasis on payment history and legal filings
- Germany: balance sheet strength and solvency ratios are key indicators
By aligning with local regulations, credit behaviours, and data availability, each scorecard delivers precise, market-specific insight.
Trusted Data Sources
Creditsafe’s risk models are powered by data from millions of companies worldwide, including:
- Official company registers
- Mandatory financial filings (where applicable)
- Trade credit and payment data
- Insolvency databases
- Court judgements and enforcement actions
- Reputable local data providers
Some sources are cross-checked to minimise errors. All inputs undergo rigorous validation and quality checks before being used in any Creditsafe scorecard.
Monitoring, Maintenance, and Model Accuracy
To maintain performance and relevance, all scorecards are:
- Monitored on a continuous basis
- Updated regularly through recalibration
- Back-tested against real-world insolvency outcomes
This ensures consistent accuracy, helping finance and risk professionals:
- Minimise credit losses
- Automate and scale credit decisions
- Prioritise collections effectively
- Comply with evolving regulatory requirements
Keeping Credit Risk Assessments Accurate and Up to Date
At Creditsafe, we continually refine our credit scorecards to reflect the latest economic conditions and market trends. By leveraging new data and insights, we enhance the accuracy of our predictive models, helping you identify potential business risks with confidence.
Our analysis covers the entire business landscape, pinpointing the indicators that consistently signal stability and those that may indicate a company is heading into difficulty. With Creditsafe, you can make smarter, data-driven decisions in an ever-changing business environment.
This ensures consistent accuracy, helping finance and risk professionals:
- Minimise credit losses
- Automate and scale credit decisions
- Prioritise collections effectively
- Comply with evolving regulatory requirements
Why Creditsafe Scoring Stands Apart
✔ Global Coverage, Local Precision
Locally optimised models deliver globally aligned credit risk insights.
✔ Proven, Predictive Analytics
Only data variables with measurable predictive power are used.
✔ Live, Real-Time Updates
Scores respond dynamically to new company information or risk indicators.
Conclusion
Creditsafe’s scoring methodology blends world-class analytics, robust data quality, and deep local market knowledge to deliver fast, predictive, and trustworthy credit scores. These insights enable businesses worldwide to make confident decisions, reduce financial risk, and drive sustainable growth.