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What is a credit risk factor?

Updated over 2 weeks ago

When Experian calculates your business credit score they look at several factors, we call these credit risk factors. These are the key parts of your business profile that influence your overall business credit score.

Each credit risk factor provides insights into different aspects of your company's behaviour and stability. Experian typically evaluates each factor based on three key aspects:

1. Category

The broad area being evaluated, such as:

  • Annual Accounts

  • Payment Performance

  • Public Records

2. Criteria

The specific item within the category that Experian reviews. For example:

  • Under Annual Accounts:

    • Accounts filed on time

    • Good liquidity for working capital

  • Under Payment Performance:

    • Settling trade credit within terms

3. Impact

This shows how the criteria affect your score:

  • Positive – strengthens your score

  • Negative – weakens your score

  • Neutral – little or no direct effect on your score

Together, these credit risk factors provide a detailed picture of your business’s financial health and help lenders, suppliers, and other stakeholders assess risk accurately.

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