Commercial Lease Decision Score
Speed, accuracy and performance ó the right combination for making better underwriting decisions. A powerful lease decision support tool brought to you by Experian and PredictiveMetrics, Commercial Lease Decision Score enables you to process a higher volume of leasing transactions with confidence, leading to increased sales, improved customer service and overall productivity.
Why underwrite with scores?
Risk scoring provides the following benefits:
- Significantly reduces subjectivity in the decision process by analyzing applicants using consistent criteria
- Provides quick decision turnaround
- Decreases underwriting overhead
Why Commercial Lease Decision Score?
Using performance-based variables, ExperianÆ is able to verify model accuracy, giving you a reliable, tested measure of future business performance. The score was derived using actual leasing performance data from major leasing companies.
Score range flexibility
Scores range from 0 and 100, with the higher scores representing a lower risk. You can use preset, performance-based ScoreClasses or you can set up to ten score ranges between 0 and 100, tying
specific decisions/actions to each range. You can easily adjust these ranges based on market factors, which can impact your need to either increase sales or more closely manage risk.
Predictive data
Commercial Lease Decision Score was developed using Experian's commercial credit database containing a suite of proven predictors of future risk:
- Trade relationship and payment history
- Public record, bankruptcy, tax liens, judgments, UCC filings
- Collections
- Business demographics
Effective lease underwriting decisions
Commercial Lease Decision Score enables lessors to predict 90+ day payment delinquency and charge-offs within 18 to 24 months of underwriting.
Risk Index by ScoreClass
Each class is performance based:
ScoreClass 1 is very low risk, ScoreClass 2 is low risk, ScoreClass 3 is moderate risk, ScoreClass 4A is high risk, ScoreClass 4B is very high risk, and ScoreClass 5 is extreme risk.
Notes: Average risk/loss is set to 100. A value of 50 represents 50% below average; a value of 150 represents 50% above average. Graphs are based on model development data set.
