Customer Credit Risk Scorecard
Before you extend trade terms to a new or existing B2B customer, score their credit risk in under a minute. Answer six quick questions and the scorecard returns a risk band out of 100 plus a recommended action — from standard terms through to upfront payment and a personal guarantee.
Customer details
How long the business has been established. Longer trading history generally means lower risk.
Your own experience is the strongest signal. A clean record with you outweighs most external checks.
A current credit report or trade references give an independent view of how they pay others.
A director's guarantee gives you recourse against an individual if the company cannot pay.
Some sectors are structurally slower or more failure-prone than others.
How much they owe (or could owe) relative to the level you are comfortable carrying.
How the score is built
Each factor below contributes points toward a total out of 100. Your own payment history with the customer and their current exposure against your comfort limit carry the most weight, because they are the signals most directly tied to whether you actually get paid. The factors are added together and mapped to a risk band — Low (75+), Medium (50–74), Elevated (25–49), or High (under 25) — each with a suggested course of action.
This is indicative scoring only — not credit or financial advice. The weightings are a general guide, not a substitute for a formal credit assessment. Make your own assessment of each customer and seek professional advice where the exposure is material.
Why score credit risk before you extend terms
Every invoice on open terms is effectively an unsecured loan to your customer. A quick, structured score forces you to weigh the same factors every time — trading history, how they have paid you, whether anyone has checked their credit, what security you hold, the sector they operate in, and how much you already have at stake. That consistency stops a strong relationship or a rushed sale from quietly overriding the warning signs.
What the bands mean for your terms
A Low or Medium score supports normal trade terms with a sensible credit limit and periodic review. An Elevated score is a signal to tighten the limit, shorten payment terms, and consider a personal guarantee before increasing exposure. A High score points to upfront payment or a deposit until the customer has built a track record with you. The recommended action shown with your result is a starting point — adjust it to your own appetite for risk.
Scoring is judgement, not a guarantee
No scorecard predicts insolvency. It structures your judgement so the decision is deliberate and repeatable, and so you can show how a credit limit was set if a debt later goes bad. Where exposure is material, back the score with a current credit report, trade references, and clear written terms — and if a customer does stop paying, Merion can pursue the debt for you. To put a figure on a sensible limit, pair this with the Credit Limit Calculator.
This is indicative scoring only — not credit or financial advice. The weightings are a general guide, not a formal credit assessment. Make your own assessment of each customer and seek professional advice where the exposure is material.
Merion recovers the debt so you can keep trading.
Commission-only recovery — no recovery, no fee. We pursue the full outstanding balance, including any applicable interest, while you focus on the customers who pay.
Related tools
Cost of Late Payment Calculator
Find out what your overdue receivables ledger is really costing — in finance charges and staff time.
CalculatorNet Recovery Estimator
See exactly how much you keep after Merion's commission when a debt is recovered.
CalculatorRecovery ROI Calculator
Is it worth referring this debt? Compare the net benefit against doing nothing.
CalculatorCommission Estimator
Estimate Merion's likely commission rate and your net return based on debt age and face value.