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Detailed Trade Risk Insight for DNBi
- What is Detailed Trade Risk Insight for DNBi?
- Do I need to order Detailed Trade Risk Insight for DNBi?
- How can I use the Detailed Trade Risk Insight for DNBi?
- How should I use Detailed Trade Risk Insight to make a credit decision together with D&B Paydex®?
- What are 3–month and 12–month Days Beyond Terms of Detailed Trade Risk Insight?
- How should I use Days Beyond Terms of Detailed Trade Risk Insight to make a credit decision together with D&B Paydex?"
- Why is Days Beyond Terms from Detailed Trade Risk Insight sometimes different from the D&B Paydex score?
- Are D&B scores in DNBi being updated with Detailed Trade Risk Insight for use within monitoring, Account Manager or Decision Maker?
- How should I interpret derogatory events? Why do some events appear in one month but not in the subsequent month, while some events are reported in multiple months?
- When an account is placed for collections, how long is the account reported?
What is Detailed Trade Risk Insight for DNBi?
Detailed Trade Risk Insight for DNBi is an enhancement of DNBi Risk Management that provides dramatic increase in information quality and visibility, allowing you to access descriptive summaries of payment behavior so that you can identify changes and trends in payment behavior that supplement existing data such as the D&B’s Paydex.
Back to the topDo I need to order Detailed Trade Risk Insight for DNBi?
No. Detailed Trade Risk Insight for DNBi is included as a part of your DNBi Risk Management Premium subscription, at no additional cost.
Back to the topHow can I use the Detailed Trade Risk Insight for DNBi?
With Detailed Trade Risk Insight for DNBi, you can identify changes or trends in payment behavior to make more insightful credit decisions.
For example, you can access summary of the most recent payment performances from the company summary page to make insightful and fast credit decisions. The summary includes
- 3–month Days Beyond Terms as reported to D&B alongside the number of payment experiences as an indicator of how quickly the company pays its bills
- Recent Derogatory Events as reported to D&B, along with the total dollar amount and the number of accounts that have been placed for collection or written off
- 13 Month Payment Trend Chart of Amount Owing and Past Due
Also, you can review highly detailed time series views of key performance indicators for the past 13 months from the Detailed Trade Risk Insight tab when reviewing borderline cases. This detailed view includes
- 3–month and 12–month Days Beyond Terms as reported by companies, alongside the number of payment experiences for both periods
- 13–month History of Derogatory Events as reported to D&B, along with the dollar amount and the number of accounts that have been placed for collection or written off
- 13–month Trend Chart and Table of Amount Owing and Past Due
How should I use Detailed Trade Risk Insight to make a credit decision together with D&B Paydex?
We recommend using data from Detailed Trade Risk Insight (DTRI) in conjunction with Paydex to improve visibility of recent payment volatility and seasonal trade payment trends of your customers.
For example, DTRI provides detail of the recent month–to–month payment trends in the form of days beyond terms, recent derogatory events and amount owing trend on the company summary page. You have greater visibility into the potential risk or recent volatility in your customers payment patterns, gaining insightful details that complement the Paydex score.
DTRI also provides a highly detailed time series view of key performance indicators for the past 13 months in the new DTRI tab; you gain detailed insights on your customer’s seasonal payment trends that complement the Paydex score.
For customers receiving alerts on Paydex changes, we recommend using data from Detailed Trade Risk Insight in conjunction with Paydex when manually reviewing their credit files because you will have access to the more detailed insights on payment behavior changes that supplement the Paydex score. As we expand solutions powered by Detailed Trade Risk Insight, we will bring greater flexibility allowing you to set alerts and receive notifications based on DTRI trade and payment changes.
Back to the topWhat are 3–month and 12–month Days Beyond Terms of Detailed Trade Risk Insight?
The 3–month Days Beyond Terms of Detailed Trade Risk Insight is a dollar–weighted average of payment experiences that have been reported to D&B within the past 3 months. Similarly, the 12–month Days Beyond Terms of Detailed Trade Risk Insight is a dollar–weighted average of payment experiences that have been reported to D&B within the past 12 months. Days Beyond Terms of Detailed Trade Risk Insight indicates how timely a company makes payments, and is provided together with the number of reported payment experiences and number of reporting companies for additional insight on the depth of the data.
Back to the topHow should I use Days Beyond Terms of Detailed Trade Risk Insight to make a credit decision together with D&B Paydex?
We recommend using data from Detailed Trade Risk Insight such as Days Beyond Terms in conjunction with Paydex to improve visibility into any recent payment volatility of your customers.
This is because 3–month Days Beyond Terms from Detailed Trade Risk Insight provides a dollar–weighted summary of payments reported within the past 3 months, whereas 3–month Paydex provides an algorithm driven score that uses the payment history trend from past 12 months of account activity in addition to the current period.
Back to the topWhy is Days Beyond Terms from Detailed Trade Risk Insight sometimes different from the D&B Paydex score?
This is possible due to the specific inputs that drive the individual results.
For example, 3–month Days Beyond Terms from Detailed Trade Risk Insight provides a dollar–weighted summary of payments reported within the past 3 months, whereas 3 month Paydex provides an algorithm driven score that includes payment history trend from past 12 months of account activity along with the current period.
Similarly, 12–month Days Beyond Terms from Detailed Trade Risk Insight provides a dollar–weighted summary of payments reported within the past 12 months, whereas 12 month Paydex provides an algorithm driven score that also includes payment history trend up to the past 24 months of account activity along with the current period.
In addition, Days Beyond Terms from Detailed Trade Risk Insight uses more granular payment data such as the exact number of days past due and the exact dollar amount rather than more general information such as payment manner. Days Beyond Terms values also use a more comprehensive set of payment experience data by incorporating an unlimited number of trade experiences reported for each DUNS from an unlimited number of reporting companies.
Back to the topAre D&B scores in DNBi being updated with Detailed Trade Risk Insight for use within monitoring, Account Manager or Decision Maker?
Detailed Trade Risk Insight for DNBi is currently available only as an enhancement to the live reports. We will continue to expand the Detailed Trade Risk Insight product roadmap to include Detailed Trade–driven scores in all D&B solutions so that you can incorporate Detailed Trade Risk Insight throughout your credit decisioning process.
Back to the topHow should I interpret derogatory events? Why do some events appear in one month but not in the subsequent month, while some events are reported in multiple months?
Derogatory events for each month should be viewed as a stand–alone value instead of as a recurring value related month over month.
When a derogatory event has been reported on a company, D&B will disclose any reportable details the trade supplier provided about the event. Some of D&B’s trade suppliers continue to report the same derogatory event data, month after month until the issue is resolved. Other suppliers only provide a one–time notification of the derogatory event with no follow up on the account.
For example,
- When the reported amounts remain the same month–to–month, the same account may be reported multiple times over the period.
- When reported amounts increase or decreases month–to–month without changes in the number of accounts, the amounts placed for collection for those accounts may have been adjusted or new accounts may have been reported to replace previously reported accounts.
- When reported amounts increase month–to–month, new accounts may have been placed on collection.
When an account is placed for collections, how long is the account reported?
While some suppliers continue to report placed for collections accounts, others suppliers only supply a one–time notification on the account.
As such, if a supplier continues to supply information on placed for collections accounts, D&B will continue to show it as long as the day of last sale is within the last 12 months. For the one–time supplied placed for collections, the account will not appear in the following month.