Statisticians in information companies tend to suggest that credit scores based on trade information and public record are better insolvency and delinquency predictors than balance sheets. Some people in the information industry are therefore thinking aloud about not including balance sheets in credit reports in order to save cost. The question must therefore be ‘How important are financial statements today in credit assessment’?
Excerpt of the discussions: Financial statements are just one component in the analysis. Would credit management do without it? In important cases is still an important element in risk assessment. Would businesses not conduct business due to unreliable financial statements? The answer is no, it is all about taking risk!