If your business’s SER rating Score is average or below average, the possibility of qualifying for a partnership with an established company is unlikely. % of Businesses in Dun & Bradstreet Databases (Approx)Īccording to the table, 21.05% of companies with a SER rating are projected to go out of business, become inactive or file bankruptcy. The sample Individual Score Range Projected Performance Table below was taken directly from the Dun and Bradstreet website: SER Rating Why are SER ratings relevant to your business?Įvery business’s SER rating maintains a “bad rate” that organizations can compare with the average. It is crucial to maintain an up-to-date business credit profile because missing or unreported information will have a direct effect on a company’s SER score and overall rank in comparison to other businesses.
Number of Suits/Bankruptcies and Dollar Amountĭifference Between Paydex and Industry Normĭollar Amount of Total Payment Experiencesĭollar Amount of Satisfactory and Negative Payment Experiences Scores are derived from a business’s Dun and Bradstreet Financial Stress Score and other commercial data (see the chart below). Scores range from 1 to 9 with 1 reflecting the lowest associated risk and 9 reflecting the highest risk. The SER rating is comprised of both SER commentary (numerical codes that reflect a business profile such as, No payment experiences reported, Higher risk industry based on inactive rate for this industry, Evidence of open suits, liens, and judgments, Change in net worth, etc.) and SER scores. Because the SER rating is more complex and takes more into consideration, a business might have a SER rating that changes more frequently than it’s Financial Stress Score. In order to come up with the SER rating, D&B uses a statistical and predictive approach to evaluate data and assess a supplier’s likelihood of failure and provide vendors with the resources to compare suppliers on a global scale this differs from the Dun & Bradstreet Financial Stress Score, which merely provides a suppliers relative ranking in the United States. It is used by vendors to determine if a supplier is more or less likely to cease business operations or become inactive over a 12 month period. The Dun & Bradstreet Supplier Evaluation Risk (SER) Rating measures the level of risk associated with a particular supplier or business. What is the Supplier Evaluation Risk Rating?
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