Financial Health FAQs

How is RapidRatings different from its competitors?

RapidRatings is an independent, unbiased firm that rates the financial health of private and public companies using their actual financial statements. This matters most where risk is hardest to see. More than 70% of the companies in global supply chains are private, and traditional credit and trade data often provide limited and unreliable information about these companies.

Most tools look backward. RapidRatings looks ahead. Our models turn verified financial data into clear, consistent, and predictive financial and performance insights. Because they anticipate financial stress instead of reporting it after the fact, you get time to act, with an average of 24 months of early warning before a supplier defaults.

What is the FHR®?

The FHR is RapidRatings' measure of a company's financial health, rated from 0 to 100. It is built entirely from a company's actual financial statements rather than payment history or market signals. That foundation is what makes it objective and reliable.

The FHR is predictive. Rather than reporting on financial stress after it surfaces, our models are built to anticipate it, forecasting a company's 12-month and long-term outlook and its probability of default with proven accuracy.

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How is the FHR generated?

Every FHR is built from actual financial statements sourced directly from the company. From that data, our proprietary models assess the company and generate a rating from 0 to 100 that captures its financial health and risk.

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What is RapidRatings' FHR Report?

The FHR Report is a full assessment of a company’s financial health and risk.

Each report presents the company’s current and historical risk trend for up to nine years. It offers the deepest layer of analysis we produce: written commentary, charts, and financial ratio tables that spell out the company's specific strengths, weaknesses, and areas of risk in plain terms. The result is a clear, evidence-backed view your procurement, finance, and risk teams can act on and stand behind.

Don't public data and credit scores provide all the insights my company needs?

No. Credit scores, trade payment data, and firmographics tell you how a company has paid in the past or how it looks on the surface. They don't tell you whether it's financially sound going forward. And for the private suppliers that make up more than 70% of most supply chains, that data is often limited and unreliable, because private companies aren't required to publish the financial statements those tools depend on.

Credit scores and payment history are also backward-looking. They register trouble only after a company has started paying late or drawing down credit, which is usually too late to act on. The FHR works from a different input, a company's actual financial statements, and offers forward-looking analysis that lets you identify financial stress long before it impacts your business.

What is the FHR Exchange™?

The FHR Exchange brings enterprises and suppliers together around a shared, transparent view of financial performance.

As a supplier, you securely share your financials, including profit and loss statements, balance sheets, and cash flow statements, to get a clear read on your own financial performance and how you compare to peers. You can share the resulting FHR with customers or partners, giving them confidence in your financial position without handing over your statements.

As an enterprise, you gain predictive insight into the financial performance of your suppliers, based on industry-specific models and verified financial data, so you can spot financial stress early and act on it before it disrupts your business.

Can I get financial health intelligence for my own company?

Yes. Companies use RapidRatings to understand their financial performance. You get an objective read on your strengths, your weaknesses, and how you compare against peers in your industry, in terms that don't require a finance background to interpret.

If your financial performance is strong, you can share your FHR to demonstrate that strength to others. During an RFP process, a validated FHR gives a potential customer independent proof of your financial position and helps build trust from the start of the relationship.

How does RapidRatings keep financial data safe?

RapidRatings treats supplier financials as confidential from the moment they're submitted. All data collection and analysis runs under an ISO 27001-certified information security program, an internationally recognized standard for protecting sensitive data.

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