The traditional approach taken by the credit bureaus with regard to business risk assessment has historically focused on analysing the financial information and payment indicators collected from lenders and trading partners.
The financial information is certainly very useful and a key component of the ORX score, however, it is not the only component. ORX has built the capability to link up a variety of disparate publicly available open data sources with UK registered companies applying Machine Learning on the data to find patterns predictive of insolvency and business closure.
Given that the credit bureau scores are based predominantly on the financial information, the credit bureaus are often unable to assess young businesses that have not yet filed financial accounts or provide a score based on the average risk of the industry pertaining to the business in question.
We demonstrate the difference between the credit bureau scores and the ORX scores using an example young business. This business operates a vegan cafe based in Kent, England in addition to a wholesale …