Company Credit Checking
The most important (and quickest) piece of information to obtain is a Credit Report. These reports show detailed financial information, along with risk ratings and a suggested maximum credit limit for the customer. If you have the resource available, it may also be worthwhile obtaining a bank reference and references from your customers key suppliers.
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Credit Report
Most people are aware of personal credit ratings, where payment records and credit applications are used to assess your credit risk. The same is true for businesses, where credit agencies gather information about trade business transactions to establish a business credit rating.
Credit agencies use a number of sources to find information about Companies, which can include payment data from company suppliers, financial reports, web mining, news and financial accounts.
Essentially, a finance expert has interpreted the Companies financial accounts and collated other relevant information to arrive at an overall risk score. Meaning that you can obtain quality information quickly and easily.
When you obtain a credit report it will show a maximum recommended credit limit. You should set the limit offered to the customer significantly below this amount and increase the limit periodically if required.
What is included:
Our reports include the following:
Company details - confirmation of the official registered name and address, the amount and value of the issued capital, the ype of accounts whether Full or abreviated and all the filing dates of accounts to Companies house. (Don't forget, with our reports you get a bonus of three years copies of the official accounts!). Where available we include the names and addresses of any auditors.
Balance Sheet - displays the last five years’ worth of balance sheet items, indicating where notes are cross referenced to notes to the accounts section of the report as supplied to Companies House. A further four items are taken from the cash flow statement.
What's the risk? - to help you determine if you should do business with a target company , we include full details of any group structure including other shareholdins, details of the latest ten county court judgements, including amounts and court references, a credit risk score for four years and the latest credit score and recommended contract limit.
Free company comparison - compares your target company with all companies within its industry type as deteremined by the SIC code they determine in their annual return.
Trading Details - confirms the trading address if different to the registered office, and where available, the telephone and fax numbers.
Company history from the official registrar - displays every change of name, all mortgage documents and one of each other filing type with a maximum of 20 being listed.
Profit & Loss details - where available, details all items for the last five years taken from Company Accounts filed at Companies House. If no P&L is available we will refund you £10. Most small companies file an abbreviated balance sheet.
Accounts extract - information on items from latest set of notes, including audit fees, intermediate assets, bank overdraft, and finance due to directors and group.
Ownership information - details any company group details and any holding companies and provides subsidiaries ranked by turnover.
Directorships - lists the company secretary and all other directors. (Now including any other Directorships the Directors may have in other companies.
Cash flow ratios - lists the main liquidity, performance, leverage and gearing ratios.