Scoring Methodology
How we calculate PaymentCheck Scores to measure company payment performance
What is the PaymentCheck Score?
The PaymentCheck Score is a rating from 0 to 100 that measures how well a company pays its suppliers. It's calculated from official UK government data that large companies are legally required to report twice yearly.
A higher score indicates better payment practices - companies that pay quickly, reliably, and within agreed terms will score higher than those with slower or less predictable payment behaviour.
The Four Scoring Factors
Each score is calculated from four key metrics, weighted according to their importance:
| Factor | Weight | Scoring Logic |
|---|---|---|
| Invoices paid within 30 days | 40 points | Direct percentage × 0.4 (e.g., 80% = 32 points) |
| Average time to pay | 30 points | ≤15 days = 30 points, ≥90 days = 0 points (linear scale) |
| Invoices not paid within agreed terms | 20 points | Inverse: 0% late = 20 points, 100% late = 0 points |
| Invoices paid after 60 days | 10 points | Inverse: 0% = 10 points, 100% = 0 points |
Maximum possible score: 40 + 30 + 20 + 10 = 100 points
Score Bands
Companies are grouped into five performance bands based on their score:
Pro-Rata Period Weighting
Companies report their payment practices every six months, but their reporting periods vary based on their fiscal year. One company might report for October-March, while another reports January-June.
To ensure fair annual comparisons, we use pro-rata weighting:
- If a 6-month report spans two calendar years, the score is proportionally attributed to each year based on months covered
- For example, a report covering October 2024 to March 2025 contributes 3 months to the 2024 score and 3 months to the 2025 score
- The final annual score is a weighted average based on total months of coverage
Example
Company X files two reports in 2024:
• Report 1 (Oct 2023 - Mar 2024): Score 72 → contributes 3 months to 2024
• Report 2 (Apr 2024 - Sep 2024): Score 78 → contributes 6 months to 2024
2024 Score = (72×3 + 78×6) ÷ 9 = 76
Coverage Quality
We track how many months of data contribute to each annual score. This helps indicate the reliability of the score:
Filing Gap Detection
We also track whether companies have gaps in their filing history. A filing gap occurs when a company reported in one year, skipped one or more years, then reported again later. Approximately 19% of companies have at least one filing gap, which may indicate compliance issues or changes in company size/status.
Data Sources
PaymentCheck Scores are calculated from official UK government data. Under the Payment Practices and Performance Reporting Regulations 2017, large companies must publicly report their payment practices twice a year.
This mandatory reporting covers companies that meet at least two of the following criteria:
- Annual turnover of more than £36 million
- Balance sheet total of more than £18 million
- More than 250 employees
Data is sourced from the UK Government's Payment Practices reporting service.
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