Good Morning,
Can anyone share their methodology for rating / ranking / scoring privately held customers? I will be happy to reciprocate. My email address is: michael.c.dennis@seagate.com if you would prefer not to post your response in this public forum.
Thank you.
Michael Dennis
In general, we have great difficulty getting financial data from privately held firms; I have seen this across several industries in my career. Making a credit decision is then based to a larger degree upon the following questions:
* What do their personal references report?
* What information is available on their credit report (commercial and personal)?
* What is the experience of the relevant credit industry group, if any?
* Did they sign a personal guaranty for all indebtedness?
* Do we have other security, e.g., lien rights, available?
We are just now beginning to use an Equifax automatic credit scoring module, but we've only been using it for a few days, so I don't know yet how good a predictor it will be for viability and likelihood of payment.
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