South Plainfield, NJ (PRWEB) December 28, 2012
Smyyth, a leader in business credit intelligence, has continued to gain momentum with its rich insight on trade payment risks in the US economy. Unlike typical credit bureau data, Smyyth’s trade data is built from industry-centric networks with customer commonality, making the data not only relevant but updated daily. The resulting Smyyth Payment Quality Index (PQI), ranging from 0-100, tracks how companies pay their bills, and is predictive of payment problems and default risks. In fact, in a survey that tracked and monitored firms over the hardest period of the recession in 2008-2009, the PQI was able to consistently identify firms that had risk of non-payment months ahead.
Since that period, the PQI shows that business-to-business accounts receivable trade payments have recovered from a crisis-era low of PQI 68 in May 2008, and reached a recent-era high of PQI 81 in September 2011, a steady trend which has continued through June 2012 when the PQI was at 80. A PQI of 80 is as close to optimum as is possible in the real economy. Additionally, over this period January 2007 through November 2012 the average high credit and average outstanding balances also trended up, indicating significant further support for payment confidence.
The power of the PQI credit index lies in its ability to provide “ground level” insights as to how promptly a given company pays its bills, but also provides indicators as to the degree by which its trade suppliers are willing to extend credit support. The better the payments, the more willing trade suppliers are to provide more trade credit support to the customer. While a more in-depth financial analysis might be necessary to enable an analyst to render any verdict on a firm’s financial health, the PQI score at the very least, provides a sound indicator of the willingness and capability of a company to meet its trade obligations.
Since most business credit decisions are based on “industry experience,” Smyyth’s investment in credit networks has been a game-changer in financial risk assessment. Smyyth today has several thousand users of its cloud-based technology platform, benefiting from minute-by-minute updates on key customer trends. In fact, the company expects to release the latest version of its innovative credit platform in the Spring of 2013, responding to overwhelming customer interest.
If you want to learn more about this and other capabilities Smyyth has to offer, please contact Bonnie Gerrity at 646-442-3704