Recordent launches KnowYourBusinessScore to help MSMEs assess buyer credit risk

MUMBAI: Trust is getting a number. Recordent has launched KnowYourBusinessScore, an initiative aimed at helping Indian businesses assess, monitor and demonstrate their overall business health while giving MSME sellers and suppliers another tool to evaluate buyer credit risk.

At the centre of the initiative is the Recordent Risk Score, a composite score ranging from 0 to 100. It combines indicators including credit behaviour, financial compliance, credit ratings, B2B transactions, legal checks and GST compliance, with additional data points expected to be added over time.

Recordent said the score is supported by a 24-section report spread across six tiers. The report covers the headline risk score, exposure, behavioural indicators, facility-level information and GSTIN-level compliance.

The framework uses nine automated rule engines to generate 23 risk flags and insights, along with a 48-month behavioural history. It is designed to assess businesses with varying levels of available credit data and borrowing history.

For MSME suppliers, delayed payments and customer defaults can put pressure on working capital and cash flows. Recordent said the consolidated risk view is intended to help businesses identify potential warning signs before extending credit.

The score combines credit and compliance information to provide a broader view of a counterparty. Credit behaviour includes repayment patterns, overdue amounts, delinquency history and credit exposure, while GST data covers filing discipline, registration and indicators of operational consistency.

The company said combining these signals could reveal risks that may not be visible through credit information alone. A business with limited borrowing history but consistent GST compliance, for instance, could have a different risk profile from one with a stronger credit history but inconsistent regulatory compliance.

Recordent CEO and co-founder Winny Patro said the company intends to position the score as a broader trust layer for India’s business ecosystem rather than a conventional credit report.

Beyond MSME suppliers, the score could also be used by lenders, fintech companies, manufacturers and procurement teams as an additional risk signal for credit assessment, customer onboarding and vendor evaluation.

Recordent plans to expand the framework by incorporating additional dimensions such as financial statements, credit ratings and trade-payment data, according to the company.