25 / 100Synthetic business
The contractor and the cafe
what a generic threshold scores 34 negative balance days in 180
- What was observed
- 34 days with a negative balance in the last 180.
- What a generic approach says
- A generic threshold scores it 25 out of 100: high risk.
- What the engine read
- For a contractor waiting on progress claims, that is normal. For a cafe settling card payments daily, it would be alarming. A collapse in trading across January matched an industry wide construction shutdown, and was expected.
- What it meant for the decision
- Each customer is judged against businesses that operate the same way, so an ordinary pattern is not read as risk.