SER Rating Recently Increased or Decreased?

Were you recently notified of a change to your business’s SER Rating? The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with the latter number indicating the highest risk of failure. We’ve prepared the infographic below to help business owners better understand what influences their SER Rating.

Ahh… That’s why my SER Rating changed? [infographic] Tweet This

How Can I Check my Business’s SER Rating?

Business owners can see their SER Rating, along with other D&B credit scores and ratings, by purchasing a business credit report.

Who Else Can See my Business’s SER Rating?

Anyone can purchase your business’s credit report. Potential customers, vendors, landlords, and lenders may review your SER Rating in order to better understand the financial stability of your business. Accessing a company’s SER Rating is often easier, and more cost-effective, than conducting independent research.

How is the SER Rating Determined?

Dun & Bradstreet uses statistical models and predictive data attributes to assign a SER Rating to an individual business. Dun & Bradstreet consults data it has on your business, along with the historical performance of other companies, in order to arrive at a SER Rating.

What Data Can Influence Dun & Bradstreet’s Calculations?

Dun & Bradstreet can consider many factors when calculating a business’s SER Rating, including, but not limited to:

  • Ownership of facilities
  • Company finances
  • Number of employees
  • Your industry
  • Region of operation
  • Both the number and dollar amount of suits, liens, judgments and prior bankruptcies
  • Total assets and liabilities
  • Net profit after taxes
  • Your most recent PAYDEX® Score
  • Payment experiences, or trade references*

Several of these factors, such as industry and regional trends, cannot be directly impacted by the performance of your company. However, small business owners can adopt certain practices that may influence their SER Rating.

How Can I Impact my SER Rating?

The SER Rating is based upon data available to Dun & Bradstreet. Ensuring that D&B has your most recent financial data and trade references may impact your company’s SER Rating. Keep in mind that many variables go into calculating the SER Rating. To learn more about submitting business information, visit Company Update. Trade references can be submitted to Dun & Bradstreet for its acceptance and approval** using Dun & Bradstreet’s CreditBuilder product.

Keeping an Eye on Your D&B Business Credit File

Many business owners have chosen to actively monitor their company’s credit file to try and gauge how their firm looks to potential partners. CreditSignal® is a free tool that will alert you to changes in your business’s D&B scores and ratings*. This additional information can help you understand when other businesses may view your company’s credit report.