Score
The score is a predictive numerical expression based on statistical analysis that indicates the probability that a company will perform in a specific way in the future.
The score requires a random and representative data set.
Indicator
The indicator is a static numerical expression based on the analysis of historical data that indicates how the business has performed during the observed period.
The indicator can be developed based on data on demand.
Rating
It is a classification or ranking of someone or something based on a comparative evaluation of its quality, level or performance.
Why are scores and indicators important?
They are one of the main tools for assessing a company's creditworthiness. They are used by: Financial institutions, business partners, credit card companies among others.
The main reason why they are used so frequently is because they help companies make more informed and accurate decisions related to:
Reducing risks: having accurate information about the right businesses.
Increased efficiency: frequent updates to ensure information is current.
Increased sales: increased sales and profits.
Increased velocity: providing breadth and depth of data.
Increased consistency: consistent data across the globe.