About CreditRiskMonitor.com
CreditRiskMonitor.com, Inc. provides interactive business-to-business SaaS subscription products designed specifically for credit and supply chain managers. These products are sold predominantly to corporations located in the United States. The overall focus of the company's Software-as-a-Service (SaaS) subscription products is on facilitating the analysis of corporate financial risk, in the context of the extension of trade credit from one business to another, the management by businesses of important relationships with suppliers, and/or the management by businesses of significant 'counter-party' (i.e., buying and selling) relationships. The company sells a suite of web-based, SaaS subscription products providing access to comprehensive commercial credit reports, bankruptcy risk analytics, financial and payment information, and curated news on public and private companies worldwide. The products help corporate credit and procurement professionals stay ahead of and manage financial risk. The company's subscribers, including nearly 40% of the Fortune 1000 and well over a thousand other large corporations worldwide, use the company's timely news alerts, research, and reports on public and private companies to make important financial risk decisions. The company's comprehensive commercial credit reports covering both public and private companies worldwide are published through its web-based platform and feature detailed analyses of financial statements, including ratio analysis and trend reports, and peer analysis. The company's newest platform, SupplyChainMonitor, leverages its financial risk analytics expertise to create a risk management solution built specifically for procurement, supply chain, sourcing, and finance personnel involved in the supplier lifecycle, risk assessment, and ongoing risk monitoring. Users can assess counterparty risks at the aggregate and granular levels under a variety of categories, including geography and industry, as well as customized, customer-specific configurations. The platform features mapping capabilities with real-time weather/natural disaster/power outage event overlays, as well as customizable news notifications, reports, and charts. The company's basic value proposition is to help its subscribers focus on finding suppliers that are financially durable as businesses with this basic attribute have more resources to support other key initiatives, such as investing in research and development (R&D); quality assurance/quality control (QA/QC); asset replenishment through capital expenditure in excess of depreciation; cyber security infrastructure; environmental, social, and governance (ESG) initiatives; and/or diversity, equity, and inclusion (DEI) initiatives. To help subscribers to either platform prioritize and monitor risk, the reports offer the company's proprietary FRISK and PAYCE scores (measures of financial distress tied to the probability of bankruptcy, powered by Artificial Intelligence, including machine learning, clustering, natural language processing, and deep neural network technology), as well as the well-known Altman Z' default score, and corporate issuer ratings from key Nationally Recognized Statistical Rating Organizations (NRSROs). The FRISK scoring model also features aggregate sentiment inputs based on the crowdsourced usage behaviors of the company's subscribers. The incorporation of this proprietary signal improved the model's classification of risk and boosts the overall accuracy through the lowering of the false positive rate for the riskiest corporations. The company's reports, on either platform, include company background information, trade payment information, as well as public filings (i.e., suits, liens, judgments, and bankruptcy information) on millions of companies around the world. To keep subscribers current with changing risk conditions, the company uses email to push selected information to subscribers. These emails include continuously filtered news monitoring that keeps subscribers up to date on events affecting the financial stability of companies selected by the subscribers. Subscribers also receive alerts covering such topics as FRISK score changes, credit limit alerts, financial statement updates, the U.S. Securities and Exchange Commission (SEC) filings, and changes in agency ratings. All news items are filtered to assure the stories have financial relevance and materiality. On the U.S. banks, reports include financial data from the Federal Financial Institutions Examination Council (FFIEC) call reports. The company's namesake SaaS product is most often purchased to review the risks of extending trade credit by a company to its corporate customers. Its products are designed to save time, money, and effort by prioritizing risk and helping automatically stay up to date as conditions change. Many of the company's subscribers use its SaaS subscription products, CreditRiskMonitor and SupplyChainMonitor, for managing the financial risk of relationships with suppliers and/or counterparties with whom they both buy and sell. Strategic planning is another use of the company's products. The company's revenue from existing subscribers who have added users responsible for procurement functions and new subscribers whose usage is entirely related to supply chain use cases is a growing percentage of total revenue. The company has contractual agreements with its data suppliers, including leading NRSROs to redistribute their information as part of its service. The company also obtain financial statements and other data from Refinitiv US LLC. Although the company reports some of this raw data directly on its web-based platform, the critical elements of its SaaS subscription products - the FRISK score, PAYCE score, ratio analysis, trend reports, peer analyses, Altman Z'-Scores, and email alerts- are computed by the company using its algorithms and weighting techniques, and are delivered in formats carefully designed for the way its subscribers prefer to use this information. Further, hundreds of subscribers and non-subscribers provide the company with confidential data from their accounts receivable systems that it parses, processes, aggregates, and reports, so subscribers can see how their counterparties are paying the invoices of other suppliers, without disclosing the specific contributors of this information (the Trade Contributor Program). The company sells the following SaaS subscription products for analyzing commercial financial risk: CreditRiskMonitor and SupplyChainMonitor. Additional products, summarized below, are add-ons or enhancements to these base subscription products meaning that subscribers must have an active base subscription to access them. The CreditRiskMonitor product provides subscribers with unlimited usage and coverage of public and private companies, featuring multi-period spreads of financial reports and ratio analysis, credit risk scores, payment-behavior scores, trend reports, peer analysis, credit limit recommendations, as well as up-to-date financial news screened specifically for materiality in credit evaluation. Another feature of the product is the notification and delivery of this news via email, concerning only companies of interest to the subscriber. This feature is supplemented with trade receivable data contributed through the company's Trade Contributor Program, as well as the U.S. public-record filing information (i.e., suits, liens, judgments, and bankruptcy information) covering millions of public and private U.S. companies. The product is delivered via a web platform and in a highly structured way, enabling the tracking of subscriber's usage information through many financial shifts. Subscribers can purchase a more limited version of the CreditRiskMonitor product with coverage of just the U.S., Canadian, Mexican, and Caribbean companies (the North American Service) for a lower annual fee. The flagship version of the product (the Worldwide Service) covers all public and millions of private non-financial companies internationally. Subscribers can purchase expanded the U.S. private company coverage (the U.S. Private Data Enhancement) for an additional annual fee. The U.S. Private Data Enhancement provides access to third-party financial distress scores on 3 million private U.S. companies. Subscribers to the Worldwide Service can purchase expanded European private company coverage (the European Private Data Enhancement) for an additional annual fee. The European Private Data Enhancement provides access to data covering 10 European countries, over 300,000 additional private company FRISK scores, over 1.2 million Altman Z'-Scores, and over 9 million businesses with financial statements. The SupplyChainMonitor product provides subscribers with interactive tools to monitor and manage their company's supply chain risks at the aggregate and granular levels. With easy-to-use filtering and built-in views, the product offers concise dashboards with drill-down capabilities to examine counterparty risk across categories, including geography, industry, and financial risk level, plus subscriber-provided metadata classes, such as criticality and direct/indirect. The product provides functions to easily view supplier locations on a world map, which supports real-time weather, natural disaster, and power outage event overlays. Material news, weather, and other risk alerts and monitoring can be configured as immediate or daily digest push notifications. Fully customizable company reports provide rich financial insights and charting, including the industry-leading 96%-accurate FRISK score, analyst-informed questions for at-risk counterparties, NRSROs ratings, over 40 unique financial ratios, and much more. With records on just over 30 million businesses worldwide, predictive risk scores on approximately 5 million, and tier-2 payment data on about 4 million businesses, the SupplyChainMonitor product provides actionable insights for procurement risk management. Macro-level risk information on 180 countries across 10 risk categories and powered by the Economist Intelligence Unit is included to assist in sourcing strategy when examining geopolitical, legal, labor, tax, and security risks. This platform is only offered with worldwide coverage and includes the U.S. Private Company Data Enhancement with third-party financial distress scores on 3 million private U.S. businesses. Subscribers can purchase the European Private Data Enhancement for an additional annual fee which provides the same enhanced coverage available in the CreditRiskMonitor product. The Credit Limit Service product, an add-on subscription service available on the CreditRiskMonitor platform product, helps subscribers manage credit line limits for their customers, in light of changes in the customers' financial strength. This interactive product monitors daily changes in a customized recommended credit limit for each customer and generates alert messages to subscribers as requested, so they can take immediate action when a customer's circumstances change. The Credit Limit Service is fully integrated with the CreditRiskMonitor platform produce, allowing subscribers to engage in deep analysis when specific credit line limits are questioned or further explanations are required. The additional fee is based, in part, on the number of companies evaluated during the annual subscription period, and includes email monitoring alerts. The Financial Statement Processing (FSP) product, an add-on subscription service available on either platform product, provides subscribers a flexible option to help ease their process in the data entry and standardization of private company financial statements, as well as provides private company FRISK scores featuring accuracy levels in the 90%+ range1 and peer analysis to public company comparables. The FSP product is sold in blocks of 10 credits, with a single credit used for each counterparty processed during the annual subscription period. Credits expire at the end of each annual subscription period. Confidential Financial Statement Tool (CFS Tool) product, an add-on subscription service available on either platform product, provides subscribers a flexible option to help ease their process in the standardization of private company financial statements and provides private company FRISK scores featuring accuracy levels in the 90%+ range1 and peer analysis to public company comparables. Confidential Financial Statement Portal (CFS Portal) product, an add-on subscription service available on either platform product, allows subscribers to invite their private company counterparties to enter or upload confidential financial statements via the company's secure web portal so they can be standardized and scored to provide private company FRISK scores featuring accuracy levels in the 90%+ range1 and peer analysis to public company comparables. Both platform products feature the company's proprietary credit scores: the FRISK score and the PAYCE score. These proprietary scores indicate the level of financial distress, by predicting the probability of bankruptcy within the next 12 months at public and private companies, respectively. The scores provide subscribers with a fast, consistent method for identifying those companies at the greatest risk. The FRISK score is updated daily, based on the latest information available to the company, and is derived from a structural statistical model back-tested using company data and bankruptcies. The company has collected anonymous usage information from its subscribers since 2003 and was able to develop an independently predictive, corporate bankruptcy risk model trained on this aggregated data. The company’s modeling confirmed that when its subscribers are concerned with a risky company, they investigate that company more closely, in distinct behavioral patterns. In 2022, the FRISK score covered approximately 300,000 public and private companies worldwide. The PAYCE score provides a highly accurate measure of financial stress when no financial statements are available for private companies. It utilizes payment data collected and processed through the company’s Trade Contribution Program, the U.S. federal tax lien data, and more to deliver an 80% accurate score on approximately 330,000 private companies in the United States and Canada. Marketing and Sales To gain market share for the company's products, it will continue to use the Internet (at its website www.creditriskmonitor.com) as the primary mechanism for demonstrating and distributing its offerings. To inform potential subscribers about its products, the company uses a combination of telephone sales, Internet demonstration, and inbound and outbound marketing, including but not limited to digital strategies, social media, media/PR outreach, trade show representation, and speaking engagements before credit and procurement groups and associations. Competition The company's major competitor is Dun & Bradstreet Holdings, Inc. (Dun & Bradstreet). History CreditRiskMonitor.com, Inc. was founded in Nevada in 1977. The company was incorporated in 1977.
