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.
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CreditRiskMonitor® (creditriskmonitor.com) sells a suite of web-based, SaaS subscription products providing access to comprehensive commercial credit reports, bankruptcy risk analytics, financial and payment information, and curated news on public and private companies worldwide. The products help corporate credit and procurement professionals stay ahead of and manage financial risk more quickly, accurately, and cost-effectively.
The Company’s newest platform, SupplyChainMonitor™, leverages its financial risk analytics expertise to create a risk management solution built specifically for procurement, supply chain, sourcing, and finance personnel involved in the supplier lifecycle, risk assessment, and ongoing risk monitoring. Users can assess counterparty risks at the aggregate and granular levels under a variety of categories including geography and industry, as well as customized, customer-specific configurations. The platform features mapping capabilities with real-time weather/natural disaster event overlays as well as customizable news notifications, reports, and charts.
Our subscribers, including nearly 40% of the Fortune 1000 and well over a thousand other large corporations worldwide, use the Company's timely news alerts, research, and reports on public and private companies to make important risk decisions. The Company's comprehensive commercial credit reports covering both public and private companies worldwide are published through its web-based platform and feature detailed analyses of financial statements, including ratio analysis and trend reports, peer analysis, corporate issuer ratings from key Nationally Recognized Statistical Rating Organizations ("NRSROs"), as well as the Company's proprietary bankruptcy analytics: the FRISK® and PAYCE® scores. One of the FRISK® scoring model's exclusive input features is the aggregate risk sentiment of our subscribers based on their crowdsourced usage behaviors resulting in the improved classification of bankruptcy risk for the riskiest corporations and boosting overall accuracy.
The Company, through its Trade Contributor Program, receives confidential accounts receivables data from hundreds of subscribers and non-subscribers every month. This trade receivable data is parsed, processed, aggregated, and finally reported to summarize the invoice payment behavior of B2B counterparties, without disclosing the specific contributors of this information. The Trade Contributor Program's current trade credit file exceeds $2.5 trillion of transaction data annually.
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Certain statements in this press release, including statements prefaced by the words “anticipates”, “estimates”, “believes”, “expects” or words of similar meaning, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, expectations or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, among others, those risks, uncertainties, and factors referenced from time to time as “risk factors” or otherwise in the Company’s Registration Statements or Securities and Exchange Commission Reports. We disclaim any intention or obligation to revise any forward-looking statements, whether as a result of new information, a future event, or otherwise.
Mike Flum, CEO & President