Credit Reports
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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