LeaseRiskScore™
In today’s competitive leasing and financial services markets, the question is not “Do I use scoring?” but “Which score should I use?” and the answer is PredictiveMetrics’(PMI) LeaseRiskScore™ statistical model for portfolio management.
LeaseRiskScore quickly and accurately predicts the likelihood that an existing customer will become severely delinquent, go to loss, or file for bankruptcy within 6 months of the date the customer was scored for collections or 18 months for portfolio management. LeaseRiskScore helps collection departments facilitate the prioritization of collection activities using risk in conjunction with aging as the primary driver of a risk-based collection strategy.
LeaseRiskScore is an empirically derived multivariate statistical based primarily on your company’s internal A/R and collection performance data, which has proven to be the most predictive data in this type of model. And it’s free and readily available. It has been mathematically proven that a collection model built using internal data only is a much more powerful predictor of future delinquency than a collection model built using only external bureau data.
LeaseRiskScore Outputs
Most credit scoring models assess the risk of a company by delivering a single data variable as an output of the model. LeaseRiskScore goes well beyond that by delivering eight (8) data variables each month on each scored customers that help you determine the inherent risk of the customer, the dollar value of your risk as well as tell you why your customer scored the way it did. LeaseRiskScore is typically delivered in a monthly scoring process and the data outputs are available to the users in both granular and report format though our hosted web application ScoreMiner or through a data file delivered through secure FTP transfer.
LeaseRiskScore FREE Validation Analysis
To prove to you that PMI’s LeaseRiskScore can provide a better analysis of your credit risk than any other method, PMI will gladly perform a FREE “LeaseRiskScore Validation Analysis” based on your AR data.
PMI’s analysis compares the LeaseRiskScore predictions to the actual results and provides you with various outputs that let you know just how well LeaseRiskScore did and what you can expect if LeaseRiskScore is implemented at your company. Also, if you are currently using another type of scoring, if you provide PMI with those scores we will be happy to provide you with a “Champion–Challenger Analysis” to show you how much more predictive LeaseRiskScore is over your current solution.
Benefits of LeaseRiskScore
- Reduce DSO and accounts receivable write-offs
- Significantly reduce operating costs
- Score all customers, not just bureau hits
- Better utilize resources
- Minimize IT resources, no software required
- Improve department productivity and effectiveness
MORE INFORMATION ON LEASERISKSCORE
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