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Scope: B2B and Commercial Trade Credit Only. This tool models underwriting methodology for business-to-business deferred payment and commercial trade credit products. It does not apply to, and must not be used for, consumer BNPL products regulated under FCA DPC, EU CCD2, or CFPB consumer credit rules. Outputs are indicative sandbox scores only — not actual credit decisions.

Business Profile

Company name

Industry sector

Years trading

Number of employees

Financial Health

Currency

Annual revenue (last 12 months)

Gross margin (%)

Existing trade credit outstanding

County Court Judgments / adverse filings

Payment history with supplier / platform

Credit Request

Requested credit limit

Requested payment terms (days)

Expected purchase frequency

Please enter revenue and requested credit limit.

← Complete inputs and click Score Application

Model Methodology & Notes

Scope: This tool models B2B and commercial trade credit underwriting methodology only. It does not apply to, and must not be used for, regulated consumer BNPL products (FCA DPC, EU CCD2, CFPB). B2B trade credit is generally exempt from consumer credit regulation in the UK (CCA 1974 s.16B — business lending exemption), EU (CCD2 Art. 2(2) — business purpose exclusion), and US (Reg Z § 1026.3(a) — business purpose exemption).
Scoring model: deterministic rule-based model across 7 dimensions. Each dimension scored 0–100. Composite score = weighted average. Weights: financial health (30%), trading history (20%), sector risk (15%), payment behaviour (20%), credit utilisation (10%), relationship depth (5%). This is a sandbox model for methodology illustration only — not a production underwriting engine.
Credit limit methodology: initial limit = min(requested, capacity-based limit). Capacity = (annual_revenue × 0.05 × gross_margin_factor) — existing_credit. Adjusted by risk tier multiplier: Tier A (80+): 1.0×; Tier B (60–79): 0.75×; Tier C (40–59): 0.50×; Tier D (<40): 0.0× (decline). Final limit rounded to nearest £/€/$500.
Sector risk adjustments: construction and hospitality carry higher sector risk scores due to elevated insolvency rates (UK Insolvency Service data 2024; US BLS business survival data). Technology and professional services carry lower risk adjustments. Healthcare is sector-neutral.
Output: Markdown underwriting memo includes scoring rationale, risk factors, credit limit recommendation, suggested terms, and standard conditions. Output is illustrative only — real credit decisions require full credit bureau data, company accounts, and qualified credit analyst review. Client-side. Zero PII.

B2B BNPL Underwriting Sandbox