With today’s economic climate demanding stricter payment terms and more visibility into your customers’ ability to pay, business credit checks have become an important part of everyday business. A simple quick online check can save you hours of tracking payments and ensure you have a good idea of ​​the state of your customers’ finances.

Debt collection can be expensive and time consuming, so by selecting the clients you deal with based on their ability to pay, you can reduce your exposure and help ease your cash flow in these tough economic times. It’s also important to get regular credit checks on your most important customers, time can change a business’s circumstances quickly, especially in today’s fragile economy, by requesting regular checks you can stay on top of customers who are having difficulties before they get caught. filter to your invoices. .

Ratings give you an indication of a company’s creditworthiness based on a number of factors and some complex behind-the-scenes numbers. They are a guide you can use when looking at a company report and trying to agree a recommended limit with your customer. Company ratings are based on the latest information files available from Companies House, they are not like consumer credit reports where financial institutions report their information on a monthly basis, so most ratings cannot take into account the late payments etc

Information from company accounts, historical accounting information, and county court judgments help establish a rating. With company reports, you can also see full details of the principals in the business and any other companies they are involved with, which can be useful when looking for a new company or if a company changes its name.

In general, the credit score takes into account many different elements, mostly taken from the accounts the business presents, and should be used as a guide in reaching your own conclusions about your customer. A simple and quick online verification is all you need to give you peace of mind and get the information you need to make an informed decision about your client.

It can also be helpful to check your own business credit score, especially if you are applying for new business financing or lines of credit with vendors, identifying your pain points means you can instantly start working on improving your business credit score.