Credit scoring: the future of decisioning in the A/R process.(NACM's 110th Credit Congress & Exposition)

Business Credit, February, 2006

Credit scoring can be defined as a method of evaluating the credit worthiness of your customers through the implementation of a formula or set of rules. Testing the credit worthiness of your customer base via credit scoring or a statistical model is by no means a new science, but it is a methodology that has evolved over the last quarter of a century.

CRF performed detailed studies of credit scoring and its impact and application by American business on extending credit to other business customers. The studies revealed that the impact of current technological change in today's business arena are changing what credit functions are performed and how they will be fulfilled; margin pressure will affect credit function size and value; economic pressures will...