The dollar guideline amounts are based on a historical analysis of the credit demand of customers in D&B's U.S. payments database who have a similar profile to the business you are evaluating in respect to employee size and industry. The guidelines do not address whether a particular business can pay that amount or whether a particular customer's total credit limit has been achieved (based on their total trade experiences and outstanding balances.) Each set of limits is accompanied by an assessment of the risk category a business falls into, or D&B's assessment of how likely they are to continue to pay their obligations within terms and their likelihood of undergoing financial stress in the next 12 months. The risk category is created using D&B's risk modeling methodology and is based on the company's credit and financial stress scores. See Predictive Scoring for more information.
Generally speaking, D&B's standard limit recommendations are less applicable for very large credit lines - over one million dollars - and when assessing very large organizations, which may pay slowly as a rule. You are most likely to find the recommended limits useful for small to medium-large size decisions. The recommended limits also are useful when you are dealing with a new customer or prospect, one with whom you do not have a previously established credit record. The recommended limits, while not customized to every situation, create useful default starting points.