The Delphi score is a credit score used to evaluate the risk of a business defaulting on a loan. It considers factors like company size, age, industry, location, financial history, and credit rating. Ranging from 0 to 100, a score of 0 indicates high default risk, while 100 implies low risk. Lenders employ Delphi scores to determine loan approval and interest rates.
Named after the Delphi method, this score ensures accuracy and impartiality through expert consensus. Various factors influence the Delphi score, such as business size, age, industry sector, location, financial history, negative payment history, and the presence of CCJs or insolvencies. While the Delphi score is a valuable tool for lenders, other aspects like the business owner’s personal credit history are also considered in lending decisions. Overall, the Delphi score provides lenders with a comprehensive assessment of a business’s loan repayment risk, aiding in making informed lending choices.
