CreditRiskMonitor Launches New PAYCE® Score to Measure Bankruptcy Risk in Private Companies
VALLEY COTTAGE, N.Y. – CreditRiskMonitor (OTCQX: CRMZ) recently debuted its new PAYCE® score, a highly accurate measure of bankruptcy risk when no financial statements are available for private companies. The PAYCE® score utilizes payment and U.S. Federal tax lien data from CreditRiskMonitor’s extensive database. The data is analyzed with sophisticated deep neural network modeling technology, a type of artificial intelligence, to deliver a 70% accurate score on about 80,000 private companies.
“Analyzing risk in private companies is a big challenge for credit, supply chain, treasury and financial professionals,” said William B. Danner, President of CreditRiskMonitor. “Our goal is to provide our subscribers with the most accurate and innovative financial risk solutions available today. In addition to our 96% accurate FRISK® score, we now offer the PAYCE® score because we know financial risk assessment in public and private companies must be treated differently.”
The PAYCE® score incorporates payment data obtained through CreditRiskMonitor’s Trade Contributor Program. This network of trade contributors provides over $130 billion in trade data on their counterparties each month to get insight into their dollar risk exposure. Unlike other payment-based models, a PAYCE® score is only calculated when there is both a sufficient number of trade contributors and trade lines on a company for the analysis.
The PAYCE® score also uses U.S. federal tax lien data. The Internal Revenue Service goes through several steps with a company that has failed to pay its Federal Income Tax before filing a lien. When a federal tax lien is filed, this often raises a red flag about the company’s ability to pay its taxes.
The PAYCE® score complements CreditRiskMonitor’s new Financial Statement Sourcing service by adding to its growing list of private company solutions.
For more information on CreditRiskMonitor’s PAYCE® score, or to schedule a free personal demo, call 845-230-3000 or go to www.creditriskmonitor.com/request-demo.
CreditRiskMonitor (creditriskmonitor.com) is a web-based publisher of financial information that helps corporate credit and procurement professionals stay ahead of business financial risk quickly, accurately and cost effectively. The service offers comprehensive commercial credit reports and financial risk analysis covering public companies worldwide. Unlike other commercial credit bureaus like Dun & Bradstreet, CreditRiskMonitor’s primary expertise and focus is on financial analysis of public debt and equity companies. The Company also collects more than $130 billion of trade receivable data on both public and a select group of private companies every month, to help subscribers determine payment performance.
More than 35% of the Fortune 1000 depend on CreditRiskMonitor's timely news alerts and reports featuring detailed analyses of financial statements, ratio analysis and trend reports, peer analyses, bond agency ratings, as well as the company's proprietary FRISK® and PAYCE® scores.
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