The D&B Viability Rating

Many lenders and creditors who rely on D&B analytic data are putting more emphasis on the D&B Viability Rating when determining creditworthiness. Unlike the D&B rating most people are familiar with, the D&B Viability Rating breaks down a company’s creditworthiness and risk into 4 easy-to-understand scores.

The Viability Rating encompasses 75 major creditworthiness factors and rates your business under four separate scoring models: Viability Score, Portfolio Comparison, Data Depth Indicator, and Company Profile.

• The Viability Score assesses the likelihood that a company will go out of business within the next 12 months. This compares your business to all other US-based businesses within D&B’s database.

  • The business is rated on a scale of 1 to 9 with 9 reflecting the highest risk and 1 being lowest risk. You will want your score to be as close to 1 as possible.

• The Portfolio Comparison details the creditworthiness of your business compared to similar businesses within the same industry, size, and location, depending on how much actual data D&B has on your business in the following four categories

  • Available Financial Data

  • Established Trade Payments

  • Limited Trade Payments

  • Firmographics and Business Activity

  • The business is rated on a scale from 1 to 9 with 9 reflecting highest risk and 1 being lowest risk. You will want your score to be as close to 1 as possible.

• The Depth of Data Indicator is an assessment of the quantity and depth of the data that D&B has in it’s database about your business, the data they used when calculating the above two scores. The business is rated on a scale that represents whether the strength of the data is based specifically about your business (solid or “predictive” data) or upon an average of other businesses in your same industry, size, and location (limited or “descriptive” data). Data comparison will be judged in the following categories:

  • Financial Attributes

  • Commercial Trading Activity

  • Firmographics

  • The business is rated on a scale of A through G, with A reflecting “predictive” data and G reflecting “descriptive” data. You will want your score to be as close to A as possible.

• The Company Profile combines the 4 categories below to quickly define your business to potential creditors or lenders. The score is based upon the following factors:

  • Financial Data

  • Trade Payments

  • Company Size

  • Years in Business

  • The scale for comparison is A through X, with Y and Z for subsidiaries and branch locations. While every business strives to eventually be ranked as an A (in business 5+ years, with 50+ employees or $500K+ in Sales), the goal is to make sure the data in your D&B profile most accurately defines your business’s current condition so you can be ranked according to your actual strength and worth.

If you would like to submit your Financial Statements to D&B for consideration, you can submit your Profit & Loss and Balance Sheet in the free D-U-N-S Manager or by submitting a support ticket here: https://support.dnb.com/?prod=financials

LESSON: It is very important that you understand your company’s overall creditworthiness and the factors that impact your approvals. If you would like to discuss your company’s Viability Rating, please reach out to schedule a free one-on-one consultation. Perhaps we can help you influence the new rating to best benefit your business.