Credit Information Score (CI) uses seven information elements to compute a measurement of a company’s overall credit worthiness. With this scale even new businesses can be scored. Since new businesses have no history with suppliers to predict their future behaviour, they automatically calculate to a neutral score of 20. Below 20 on the scale, risk is low. The CI score tell you the current likelihood of being paid if you choose to grant credit.
Payment Index (PI) measures the average days beyond terms it takes a business to pay its suppliers. It is often used in conjunction with Commercial Delinquency Score, which reveals signs of derogatory information, such as collections, returned checks or bankruptcies. Like any other means of measurement, it defines what is good and bad, large and small, slow and fast. The Payment Index ranges from 0 to 99. The closer the company scores to zero, the better it pays its suppliers. A zero score would indicate all suppliers are paid within terms.
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