What Percentage of Companies Are Considered High Credit Risks?

Approximately 20 percent of companies doing business today are considered high risk. Another 5 percent are very high risk.

On the safer side of things, 35 percent are moderate risk and a happy 40 percent are low risk.

Although many lenders use their own credit scoring systems, the majority use a scoring system called FICO, developed by Fair, Isaac & Company.

FICO scores range from 300 to 900, with a score of 900 as hard to get as a perfect 1200 on the SATs. Typically, any company scoring 680 or higher is considered a low-risk borrower. Companies earning a FICO score of 620 or lower, are usually placed in the high-risk category.