Credit Report Company
Credit Report Company
A credit report company is a company that delivers credit information about a company or person to the public. There are two main types of credit report company, there are those that provide credit data on companies and those that provide them for individuals. The credit information received will tend to come in the form of a report with their other identification details.
Individual Credit Report Company
This type of credit report company will provide credit data about individuals. Many lending companies such as banks and mortgage lenders would use these companies' services as part of the decision of whether or not they will issue a loan to individuals. An individual report company will give a scoring to an individual based on the following information:
- How many times the individual has applied for credit
- The number of credit cards the individual holds
- The number of loans they hold - and how much they are
- Their bill paying history
- The number of times the individual has moved
There are also other factors that the credit report company would use to calculate an individuals credit score.
Company Credit Report Company
The other type of credit report company is the company credit report company. These companies will provide credit information on different companies. Their raw data is usually obtained through public offices such as Companies House.
- Firstly the credit report company captures raw data from Companies House where it is then translated into financial data.
- The credit report company then analyses the financial data obtained to calculate a credit score and a credit limit for the company.
- All of the information captured on a company from Companies House is then converted into an easy to comprehend report that is easily accessible to the public.
Many businesses large and small will request these documents on companies they are considering to do trade with. The main benefit is that they can glimpse an insight into the workings of the other company.
The Benefits of Employing a Credit Report Company
It is beneficial as well as advisable that companies carry out credit checks on clients regularly. Companies should use this valuable information as part of their important business decisions. Using a credit report company is the best way to reduce the risk of arising bad debts.
Credit reports should always be obtained before deciding to extend credit to clients and customers. This will let you know what the client's bill-paying history is like and therefore whether they will be reliable as a customer. As circumstances can change, it is important that you monitor your client's credit rating regularly, you may need to change your credit terms and conditions according to the client.
It is also advisable to view credit reports on potential suppliers before deciding to trade with them, this will help you to avoid bogus suppliers. It is also a useful tool to let you judge which is the most appropriate supplier to use as well as their long term viability.
checkSURE is a credit report company that provides credit reports on UK companies. Their reports are delivered online and instantly, with a facility for clients to receive email alerts if there are changes within their companies of interest. Obtaining credit reports means that you can check the financial status of any clients that you are considering doing business with – either as a supplier, or a customer.
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