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Credit model overview

Access a detailed data-driven assessment of a business's financial health and creditworthiness

Lending's premium Credit model feature provides an intuitive way to interpret, visualize, and analyze a borrower’s accounting and banking data. It offers a holistic view of financial performance to support credit decisions and other financial evaluations.

Premium feature

Credit Model report is a premium feature of the Lending product. Contact your Account Manager if you wish to enable it.

Features​

The Credit model contains a variety of features that enhance the underwriting process:

  • Dashboard: an all-encompassing view of a borrower’s financial health

  • Credit score: a customizable credit score that aligns the model to the metrics most important to your analysis

  • Accounting score: an evaluation of the quality and completeness of a business’s bookkeeping

  • Financial summary: financial statements that are automatically spread with calculated metrics and ratio

  • Bank summary: bank transaction data that is converted into a cash-based profit and loss statement

  • Debt summary: a breakdown of existing debt with historical and projected repayment terms

  • Customer summary: terms, concentration, and punctuality of a borrower’s receivables

  • Repayment summary: terms, concentration, and punctuality of a borrower’s payables

Feature components​

The Credit Model report can be based on accounting data sources, banking data sources, or both.

Supported integrations: accounting​

Supported integrations: banking​

Feature enrichments​

The Credit model report provides the following insights into the financial health of a company:

  • Key highlights: a detailed outline of the company’s best performing and most material financial metrics

  • Key risks: a detailed outline of the company’s worst performing and most material financial metrics

  • Proforma cash runway: a prediction of a cash runway that considers historical burn, upcoming capital injections, and future debt payments

  • Knockout rules: custom alerts for when certain financial metrics reach given thresholds

  • Accounting issues: an explanation of any poor bookkeeping practices

  • Closed books indicator: an estimation of the most recent accounting period officially closed by a business

  • Debt repayment schedule: implied terms of a company’s credit cards and debt facilities, including payment, frequency, maturity, and balance

  • Accounts receivable aging: an automated aging schedule from unpaid customer invoices

  • Accounts payable aging: an automated aging schedule from unpaid supplier bills

  • Customer summary: a full overview of customer repayment behavior, including percentage of on-time payments, breakdown of repayment terms, and customer concentration

  • Repayment summary: a full overview of supplier repayment behavior, including percentage of on-time payments, breakdown of repayment terms, and supplier concentration

Supported outputs​

You can generate and retrieve the data read and enriched by this feature in an Excel format using an API call or in the Codat Portal.

Get report via API​

Use the Generate report endpoint to asynchronously generate the report. Set the reportType parameter to creditModel. Initiating the report will trigger a new data sync.

Next, call the Download credit model Excel endpoint to retrieve the resulting report.

You can also view individual Credit Model metrics using the Get financial summary insights endpoint.

The Credit Model feature must be enabled before you can generate the Credit Model report and its metrics via API. Speak to your Account Manager to enable it.

Get report via Portal​

In the Codat Portal, navigate to Companies and select the company you want to analyze. In the side menu, click Lending > Reports.

In the list of reports, find Credit Model and click Generate report. Once the report is ready to download, it will appear underneath the report name. Click Download to save the report to your machine.

The Credit Model feature must be enabled before you can access the Credit Model report in the Portal. Speak to your Account Manager to enable it.

A snippet of the Codat Portal company detail screen with the Lending > Reports path visible and Credit Model report displayed

Get started​

Once you have the Lending solution enabled, contact your Account Manager or our support team to enable the Credit Model report. As a premium feature, it will be billed in addition to your use of the Lending solution.

Next, configure your instance to work with the Credit Model feature.

Configure data sources​

Follow the respective guides to set up and enable accounting integrations that will serve as a data source for the feature:

Accounting data sources​
Premium
NL
UK
Premium
Premium
On-premise
UK
US
Ireland
Canada
France
Germany
Spain
Premium
Banking data sources​

Enable data types​

See how to enable data types and ensure the following data types have been switched on:

AccountingBanking
Company companyBanking transactions banking-transactions
Profit and loss profitAndLossBanking accounts banking-accounts
Balance sheet balanceSheet
Bills bills
Bill payments billPayments
Suppliers suppliers
Customers customers
Invoices invoices
Payments payments
Credit notes creditNotes

Configure webhooks​

We recommend you subscribe to the following webhooks if you are using an API solution:

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