Efficient account evaluations with flexible scoring models
Efficiently
identify accounts requiring immediate attention and
isolate accounts requiring human intervention in the
risk review process. CCM transforms your credit policies
into rules-based scores that determine account creditworthiness.
Now assess an account in seconds.
You have ability to create unlimited number of models
for your business situations. Each model is designed
and customized by you. You establish the level of
emphasis for each decision item. Plus online changes
to your model may be made at any time.
The rule-based scoring is also straightforward to
implement because it uses your credit policies and
procedures, the number of rules can easily be set,
and the grading scale can be simple or complex. Note,
you have total flexibility in designing the scoring
critera and the grading scale.
Best of all, you don't need to hire an expensive
consultant to design scoring models. CMS helps you
build your models as part of the implementation for
no extra cost while leveraging our extensive installation
experience and shared best practices from NACM and
Credit Research Foundation.
Don’t worry if all accounts don’t have
the same level of information provided. The scoring
dynamically adjusts based on the information available
meaning it only scores information entered and re-weights
(aka normalization) appropriately.
As you can see in the sample provided, traditional
items typically consist of non-financial information
that you would normally use when making a credit decision.
Feel free to add the items that you use in yourfirm
or particular industry. Much of this information can
be automatically fed for subsequent scoring. For instance,
the pay history to your firm can be from your AR/account
system and other data elements such as years in business
(control years) can be from an agency such as D&B
or Experian.
The Credit Agency category will contain
the third party ratings that you consider most important
when making a credit decision.You are not LOCKED into
a single credit agency. Since the ratings are translated
into a common grade scale, understanding the multiple
credit agency scores is easier to understand by eliminating
the proprietary agencies alphabet soup of rating scores.
Again, you can have interfaces with many third party
ratings.
CCM enables you to bring in detailed
financial statements and automatically compute ratios
including custom ratios of your choice. The ratios
are compared to other peer firms. Use RMA or your
own peer group to score. The example below shows the
financial categories where each category has its own
set of ratios. Financials can be downloaded or manually
entered for this analysis.
