Business credit scores and financial health rating models are built with extensive data sets to derive statistical accuracy. Although no model can ever be 100% perfect all the time, advances in data science allow for continual statistical accuracy improvements.
Players in the risk industry (ratings agencies, credit bureaus and due diligence firms) all play an important role in the corporate risk ecosystem, and it’s important to understand the advantages and disadvantages of each type of organization.
Public Companies: There is a lot of data and information available on public companies. Public companies must report their audited financials quarterly. Because information is freely available, the differences between players in the risk industry is determined by their rating methodologies and capabilities.
Private Companies: In most countries, public companies do not have to make their financial data publicly available. There is absolutely no way for a company in the risk ecosystem to get a full view of a private company’s financial data without obtaining that data directly from the company. Banks and other firms that collect data from private companies can utilize the ratings of risk industry players, but those risk industry players are not allowed to resell or reuse that information. Anybody who implies that they have access to private company financial data is likely not being truthful.
There are only two ways to obtain private company data:
Acquire unreliable semi-public reported data (credit bureaus);
Get data from the private company directly.
REBIRTH Analytics utilizes proven methods to quickly gather relevant data on private companies.
Typically reported directly from a company that is trying to engage with a company to win business or to get financing).
REBIRTH Analytics cross-checks any self-reported data to determine inaccuracies, and flags anomalies.