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Financial Stress Score (FSS)
The Financial Stress Score (FSS) predicts the likelihood that a business will experience financial distress over the next 12 months, such as filing for bankruptcy. The FSS is comprised of a company's: business history, payment habits, and industry norms. Scores range from 1 (Low Risk) to 5 (High Likelihood).
A business that is financially stressed has:
- Ceased operations following assignment or bankruptcy
- Ceased operations with loss to creditors
- Voluntarily withdrew from business operation leaving unpaid obligations
- Is in receivership, reorganization, or has made an arrangement for the benefit of creditors
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