Exploring a credit scoring process

Read the credit scoring article cited below and think about how credit scoring might be done when the customer is a business. (Examples when the customer is an individual include credit scoring done by an automobile dealership that offers car loans or a bank that is offering home mortgages. Examples when the customer is a small business include almost any situation in which a business buys equipment or supplies on credit.)

Questions:

1. What are the typical steps in credit scoring process and what is the product of credit scoring? (Or if the article is unclear on this, explain why it is unclear.)

2. Explain which of the architectural characteristics mentioned in this chapter are important issues in credit scoring.

3. Explain how the process performance variables mentioned in this chapter are relevant to credit scoring.

Source:
Dun & Bradstreet. "Credit Scoring: Big Opportunities for Small and Start-Up Businesses" October, 1998
http://www.dnb.com/credit/hcredit3.htm

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