The uncertainties of how customers will pay their bills in the face of full or partial shutdowns of unknown duration, and the unpredictable amount of time required for the economy to fully recover once all shutdowns have been lifted, is the new normal for the economy. The challenge presented by the new normal for credit managers is how to do credit scoring.

The assessment of credit risk in the new normal requires an approach to credit scoring which takes into account a combination of old and new information, and careful weighting of the risk factors.  Here are some risk factors to consider in credit scoring during the new normal.

Financial Strength

Current financial strength is a critical consideration under any circumstances, and especially now given the uncertainties facing the economy. If your customer has ample working capital, including a large cash balance and an available line of credit, then it is more likely that the customer will be able to survive the possible negative effects of other risks.


Credit scoring needs to take into consideration the location of your customer. If your customer is in an area subject to a stay-at-home order for an undetermined period of time, this may significantly impact the customer’s ability to survive if it is not offset by mitigating factors such as financial strength.


The industry your customer serves should be a major consideration in credit scoring. If the industry is considered essential, this may allow your customer to continue to operate and grow. On the other hand, if your customer serves a heavily impacted industry such as travel, it may not have enough business to continue to operate.

Opportunities can arise even under the direst circumstances. Credit scoring, which considers the relevant risk factors of the new normal and their weighting, can help your company survive and be ready to take advantage of business opportunities as the economy opens up.

Handling credit scoring during the new normal will be a challenge for many companies. While you should always assess credit risk carefully and use risk factors including customer geography and industry in credit scoring, be sure to use good business judgement to make close calls, particularly if it involves a good customer relationship. Customers will remember the suppliers who worked with them through this economic crisis, and the ones who did not.

Cloud-based credit and collection platforms provide the solutions you will need to handle credit scoring during the new normal.

Lockstep Collect is a market leader in cloud-based credit and collection platforms. Lockstep Collect can help you develop the credit scoring you need to assess credit risk during the new normal.

If you would like to learn how you can benefit from credit scoring, please contract Lockstep Collect at

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