The PAYCETM score provides a highly accurate measure of financial stress when no financial statements are available for private companies. It utilizes payment and U.S. federal tax lien data from CreditRiskMonitor’s extensive database, analyzed with sophisticated deep neural network modeling technology, a type of artificial intelligence, to deliver a 70% accurate score on approximately 80,000 private companies.
The first of the fundamental components to the PAYCETM score is payment data obtained through CreditRiskMonitor’s Trade Contributor Program. Our network of trade contributors provides more than $135 billion in trade data on their counterparties every month, giving them visibility into their biggest dollar risks.
As our Trade Contributor Program grows, so will the number of PAYCETM scored businesses in our database.
U.S. Federal Tax Liens
The second of the fundamental components which make up the score is based on U.S. federal tax lien data. The Internal Revenue Service goes to great lengths to negotiate terms with a company that has defaulted on its tax debt. When a federal tax lien is filed, this is often a signal there’s a serious issue with the company’s ability to pay its federal taxes.