Credit Report
Credit Report
Credit reports are produced on companies so that businesses may guage their creditworthiness. As credit reports tend to reflect a company's financial history, it is important that businesses obtain them on all their potential clients and suppliers. Credit reports on other companies will therefore help you to make informed decisions as to whether your company should trade with them.
The Benefits of Credit Reports
As credit reports are relative to a business’ financial history, it allows you to judge the long term viability of any business that you wish to trade with. Knowing a clients credit history would also help you to avoid instances of bad debt - it allows you to set out special terms and conditions. The following lists the benefits of obtaining credit reports on companies before trading with them:
- Allows you to make an informed decision as to which companies you should extend credit to.
- The financial data will help you judge the client's worth and therefore make decisions to set appropriate credit terms with them.
- As credit reports have to display the correct data on a company, they can be used to verify the correct legal entity that you are trading with.
- If you regularly monitor a client company's financial position using credit reports, you can reassess credit terms according to how good they are at repaying accounts.
- They are also a useful tool to see whether a client has the means to repay a debt before instructing recovery action. It will help to verify the client's legal status when they fall into bad debt.
Credit reports are therefore a very useful tool that should be used regularly to gain an insight into the financial position of a company.
The Importance of Credit Reports
Many companies today choose to extend credit to their clients, if you choose to do the same, it is advisable to carry out some research first before doing so. You should aim to obtain credit reports on all potential clients to see whether they are creditworthy. Steering away from clients who have a poor credit history will minimise the risk your company takes on bad debts arising.
It is also advisable to obtain credit reports on your existing as well as potential suppliers' companies. This will also reduce the risk of your company losing money to bogus suppliers who do not supply goods after payment.
Some companies choose to obtain credit reports on themselves, monitoring themselves throughout the year. They will be able to view what other companies will see about them and also keep a close eye on any documents they have filed at Companies House. Monitoring your own company will alert you to changes within the company and how it affects your credit ratings. It will also reduce the risk of fraud documents being filed against your company at Companies House, ensuring that only correct information is viewed by your potential creditors.
Credit Reports from checkSURE
checkSURE can provide instant company credit reports online, their database covers 1.7 million UK Limited companies as well as sole traders and unincorporated partnerships. On registering for a free account, checkSURE users can search for a company of their interest immediately. Paying via credit card online, reports are instantly generated and placed within the users own personal portfolio.
checkSURE also provides a free "Company Monitoring" service, this allows users to place a company in their portfolio for monitoring. They will then receive updates via email to alert them of any changes within the company.
There are also options to purchase a "Keep it Live Report" service at £14.95. This allows users to receive a "fresh" report for one company as many times as they want for a full year - ideal if you want to keep a close eye on your client and supplier companies.
Each checkSURE user is given their own "checkSURE Portfolio" where reports purchased on companies are kept. Users are able to access their portfolio whenever they wish to see the reports they have purchased. The "Email Alert" service will then send out email updates whenever there is a change in the companies within the portfolio.
All checkSURE credit reports are displayed immediately on purchase and emailed to the purchaser in an attached html format.
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