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How are business credit scoring models developed?


Business credit scoring models are developed using sample sizes that range from 1 to 3 million businesses. Development of business credit scoring models is extremely complex; but in simple terms, models are built after hundreds of hours of analyzing business firmographics and business credit histories, identifying payment trends, and creating predictive algorithms based on findings. Up to 200 variables may be used in calculating a single business credit score. All business credit scoring models are developed in-house and are proprietary to Experian.

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