Hjelpeside

Decision Score Person tells you which customers having high and low risk of default within 12 months.
The model contains integrated policy codes. These are elements that will be of importance for the giving of credit that go beyond the statistical probability. See our list of policy codes.

Decision Score 1 - High risk
A person in zone 1 has statistically a 55.3 % chance of default within 12 months.

Decision Score 2 - Moderate risk
A person in zone 2 has statistically, a 11.9 % chance of default within 12 months.

Decision Score 3 - Low risk
A person in zone 3 has statistically an 5.9 % chance of default within 12 months.

Decision Score 4 - Low risk
A person in zone 4 has statistically a 4.3 % chance of default within 12 months.

Decision Score 5 - Low risk
A person in zone 5 has statistically a 1.2 % chance of default within 12 months.

Decision Score Company estimates a company's probability of default (commencement of bankruptcy proceedings, forced liquidation, insolvency and/ or composition) within 12 months.
The model contains integrated policy codes. These are elements that will be of importance for the giving of credit that go beyond the statistical probability. See our list of policy codes.

When evaluating a sole proprietorship (type ENK) the probability of default (unsettled debt collection claim after 90 days) within 12 months is estimated.
When evaluating an enterprise with liability (type ANS) we will notify who has been appraised. When evaluating a person as the liable partner, the probability of default (unsettled debt collection claim after 90 days) is used.
When evaluating a company as the liable partner, the probability of default (commencement of bankruptcy proceedings, forced liquidation, insolvency and/ or composition) is used.

Decision Score 1 - Lowest creditworthiness
A company in this zone has a 28.8% chance of filing for bankruptcy, forced unwinding, insolvency and/or composition within 12 months.
Statistically the company has a 31% chance of receiving a payment remark within 12 months.

Decision Score 2 - Moderate risk: Major credits should be ensured
A company in this zone has a 4.9% chance of filing for bankrupcy, forced unwinding, insolvency and/or composition within 12 months.
Statistically the company has a 25% chance of receiving a payment remark within 12 months.

Decision Score 3 - Creditworthy
A company in this zone has a 1.3% chance of filing for bankrupcy, forced unwinding, insolvency and/or composition within 12 months.
Statistically the company has a 15% chance of receiving a payment remark within 12 months.

Decision Score 4 - High creditworthiness
A company in this zone has a 0.4% chance of filing for bankrupcy, forced unwinding, insolvency and/or composition within 12 months.
Statistically the company has a 6% chance of receiving a payment remark within 12 months.

Decision Score 5 - Highest creditworthiness
A company in this zone has a 0.1% chance of filing for bankrupcy, forced unwinding, insolvency and/or composition within 12 months.
Statistically the company has a 2% chance of receiving a payment remark within 12 months.

Payment Index is a scoring solution which ranks insolvency in companies, meaning the probability of a company having unsettled debt collection after 90 days endurance. Companies which have a high probability of having an unsettled debt collection are placed in the red zone. Companies with a low probability are placed in the green zone.

Private limited companies are the only type of companies that are ranked in the Payment Index.

Red zone
A company in the red zone has a 46.1% chance of having an unsettled debt collection after 90 days endurance. 4.5% of all Norwegian companies are in this zone. It is 6 times more likely that a company in this zone has an unsettled debt collection after 90 days endurance compared to an average Norwegian company.

Yellow zone
A company in the yellow zone has a 13.7% chance of having an unsettled debt collection after 90 days endurance. 12.7% of all Norwegian companies are in this zone.It is twice as likely that a company in this zone has an unsettled debt collection after 90 days endurance compared to an average Norwegian company.

Green zone
A company in the green zone has a 3.5% chance of having an unsettled debt collection after 90 days endurance. 82,8% of all Norwegian companies are in this zone. It is half as likely that a company in this zone has an unsettled debt collection after 90 days endurance compared to an average Norwegian company.

Decision Limit estimates the recommended maximum credit a company should be granted.
Credit limits are estimated for the following forms of business organizations: Ltd., PLC, Limited Liability Company, House building Cooperative / Housing cooperative, Mutual Insurance Company Cooperative, Association, Foundation and Savings bank – providing they are in zone 3, 4 or 5.

Decision Limit uses zone, turnover and equity as variables, and supplements Decision Score Company. Through increased security, Decision Limit helps the subscriber grant the right amounts of credit to the right customers.

Uncritical use of the model is not advised. There may occur instances where it can be defensible to exceed the recommended maximum credit, or where the recommended credit is too high.

When the limit of a new business in zone 3 is estimated, it is based on size of the company’s share capital.

All public forms of business organization have a fixed limit of NOK 1 000 000

Forms of public business organization:

FKF	County administrational business
FYLK	County authority
KF	Municipal enterprise
KIRK	Church council
KOMM	Municipal
ORGL	Organizational Link
SF	Government-owned Enterprise
STAT	The Government
IKS	Intermunicipal enterprise

A subdivision is a separate operational division under the juridical principal division.
The principal division is responsible for all business activity, both juridical and economic.
In terms of credit evaluation it is important to be aware that the principal division is responsible
for the subdivision's economic commitments. One may enter into agreements and deals with the subdivision.
Regarding depth collection it is yet the principal department which is responsible for the subdivision's depth.

Defect/faulty submitted annual accounts

The annual accounts for last year have been provided, but contain errors and/or defects and are therefore not presented in this credit report. Annual accounts must be approved and complete to be employed in our services.

Number of employees are updated monthly from the Aa-registry.
The registry is managed by NAV, and contains a listing of all employment in Norway.
The employer shall notify intake, modification or termination of employment to the registry.

See more about NAV Aa-registry

The following scale has been used to evaluate income, solidity and liquidity:

Less acceptable
Weak
Acceptable
Good
Very good

Income

Operating profit margin

The operating margin measures the size of the operating result compared to the turnover.

Interest cover

The interest cover indicates to what extent the company is capable of paying their financing costs. It also predicts how much dept the company is capable of taking within the next few years. The interest cover should be higher than 3, meaning that the financing costs should not amount to more than 1/3 of the extraordinary posts' result.

Return on total capital

The return on total capital measures the company's return on total capital which is tied up in the company. The return on total capital should be higher than the standard level of interest on loans.

Return on net capital

The return on net capital measures the return on the owners'investments in the company. The return on net capital should be higher than what an alternative investment with a lower risk would result in, e.g. a bank deposit.

Solidity

Equity ratio

The equity ratio indicates the amount of equity capital the company has compared to the total capital.

Equity to revenues ratio

Equity to revenues ratio measures the amount of equity capital in the company in comparison to the amount of operating income. It indicates how much deficiency they can have next year before the shareholders’ funds are lost, presupposing the operating income equals last years. With a 10 % equity to revenues ratio the company can have 10 % deficiency without losing their total equity.

Liquidity

Liquidity ratio 1

Liquidity ratio 1 indicates the relation between current assets and short-term dept. It measures the company's ability to settle their payment obligations in due time.
Liquidity ratio 1 should be higher than 1,5.

Liquidity ratio 2

Liquidity ratio 2 measures, as liquidity ratio 1 does, the relation between current assets and short-term debt. The difference in this case being that the stock, which is considered to be the least liquid asset, has been subracted.
Liquidity ratio 2 should be more than 1.

Liquidity ratio 3

Liquidity ratio 3 indicates the relation between the most liquid assets and the short-term debt. The most liquid current assets are bank deposits, cash etc.
Liquidity ratio 3 should be higher than 0,33.

Productive capital

Productive capital measures to what extent the current assets are higher than the short-term debt. Productive capital should be positive.

Financing

Long-term financing of stock

Long-term financing of stock measures the share of the stock which is financed long-term.

Foreign capital costs

The foreign capital costs indicate how much capital cost the company pays for the short-term and the long-term debts.

Liquid capital in % of sale

Liquid capital in % of sales measures how much the company's most liquid assets constitute as a percentage of the annual operating income.

Debt ratio

Debt ratio indicates how much debt there is in comparison to the equity in the company.Debt ratio 1 indicates that debt and equity are equal.Hence the lower the ratio – the more solid the company. Debt ratio should be under 5.

Efficiency

Average storage time (days)

Average storage time indicates the average length of time the stock is in storage. The accepted average storage time varies from industry to industry.Nonetheless it should be as few days as possible.

Average credit period for debtors

The average credit period for debtors measures the average length of time it takes for the invoice to be sent to the customer and for the customer to pay it.The shorter the credit period - the faster the circulation of money. This will in turn increase the company’s liquidity.The average credit period varies from industry to industry.

Average credit period for suppliers

Average credit period for suppliers measures the actual credit length the company has towards its’ suppliers.If the credit period exceeds the company’s expected loan commitment this can be interpreted as a danger signal. This implies that the company does not pay their suppliers in due time.

Debtor degree

The debtor degree indicates the share of outstanding monthly turnover. A company which operates with credit sales should have a ratio between 1.2 – 1.4. If the debtor degree is higher than 1.4 this implies that the accounts receivable has a considerable share of claims that have fallen due with more than 30 days. The probability of potential loss on accounts receiveables/claims increases in proportion with the debtor degree.

Creditor degree

The creditor degree indicates the share of monthly turnover which is tied up in accounts payable. A company which operates with credit sales should have a ratio between 0.8 - 1.0. If the creditor degree is higher than 1.0 this implies that the accounts payable ledger has a considerable share of claims that have fallen due with more than 30 days.The probability of contracting payment remarks and thereby being charged interest on overdue payment increases in proportion with the creditor degree.

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By subscribing for information from EasyMatch you may search for companies
and persons and get hitlists with address information, phone numbers and birthdates independent of
the credit information database in Bisnode Norge.
Bisnode Match:it's database is built with information from postal, phone, business and public registers.
With EasyMatch integrated with CreditEasy you may easy
verify that you have found the correct company or person before you collect credit information.

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