Update regarding Commercial Credit Scores
Dear Equifax Customer,
In 2020, we introduced three new Commercial Credit Scores: Business Failure Risk Score 2.0 (BFRS2.0), Commercial Delinquency Score 2.0 (CDS2.0), and Financial Trade Delinquency Score (FTDS). These are predictive models that are designed to predict the likeliness of:
-A business to fail within the next 12 month period;
-A business to be delinquent on their industry credit obligations within the next 12 month period; and
-A business to be delinquent on their banking or financial trade credit obligations within the next 12 month period.
In an ongoing effort to deliver scores that provide valuable information to inform your risk management decisions, we are releasing newer versions of these scores. Business Failure Risk Score 2.1 (BFRS2.1), Commercial Delinquency Score 2.1 (CDS2.1), and Financial Trade Delinquency Score 1.1 (FTDS1.1) will be made available in our UAT environment on February 15th for customers to test the new score code and results, and will be available in our Production environment on March 28th when the improved scores results will be returned in the Equifax Business Credit Report.
Below is a summary of the implemented changes:
-More recent development sample
-Improved handling of reason codes
-Additional attributes for improved modelling
-Improved score calibration
-For BFRS, improved handling of businesses with historic failure recorded on at least one trade
-For CDS and FTDS, improved handling of trades that are already delinquent, and better handling of “No Trade/Thin File” businesses
Previous legacy versions of Business Failure Risk Score (BFRS1.0) and Commercial Delinquency Score (CDS1.0), will be decommissioned as of October 15, 2021 as part of our Business Transformation. If you are leveraging one of these scores in your decision models and would like to run validations of the newer iterations, please reach out to your Equifax sales representative.
If you simply receive these scores as part of your web portal output, no action is required on your part.
You can find more information on our Commercial Reports and Scores content hub.
Thank you for choosing Equifax and please do not hesitate to contact us by phone at 1-877-227-8800 if you have any questions.