The report utilizes a business credit score based on a predictive "probability of default" model. Both were developed by studying the historical default behavior of business loans, along with the financial characteristics of the businesses and their owners prior to default. The Business Credit Report combines financial data from a company for a more comprehensive view of its credit risk and probability of default. The use of both personal and business data is critical, Sageworks said, given the interlinking between businesses' and owners' financials and risk. The report is generated by a data-driven method which relies on the analysis of objective statement information. It does not rely solely on payment histories, demographic data or community-based scores, Sageworks said.
