Valley Cottage, New York – CreditRiskMonitor (OTCQX: CRMZ) recently debuted its new PAYCE score, a highly accurate measure of bankruptcy risk when no financial statements are available for private companies. The PAYCEscore utilizes payment and U.S. Federal tax lien data from CreditRiskMonitor’s extensive database. The data is analyzed with sophisticated deep neural network modeling technology, a type of artificial intelligence, to deliver a 70% accurate score on about 80,000 private companies.
“Analyzing risk in private companies is a big challenge for credit, supply chain, treasury and financial professionals,” said William B. Danner, President of CreditRiskMonitor. “Our goal is to provide our subscribers with the most accurate and innovative financial risk solutions available today. In addition to our 96% accurate FRISK score, we now offer the PAYCE™ score because we know financial risk assessment in public and private companies must be treated differently.”
The PAYCE score incorporates payment data obtained through CreditRiskMonitor’s Trade Contributor Program. This network of trade contributors provides over $130 billion in trade data on their counterparties each month to get insight into their dollar risk exposure. Unlike other payment-based models, a PAYCEscore is only calculated when there is both a sufficient number of trade contributors and trade lines on a company for the analysis.
The PAYCE score also uses U.S. federal tax lien data. The Internal Revenue Service goes through several steps with a company that has failed to pay its Federal Income Tax before filing a lien. When a federal tax lien is filed, this often raises a red flag about the company’s ability to pay its taxes.
The PAYCE score complements CreditRiskMonitor’s new Financial Statement Sourcing service by adding to its growing list of private company solutions.