Healthy cashflow is the lifeblood of any business, however a surprising number of businesses make credit based decisions without the relevant information such as a company credit check, thereby putting their cashflow and business at risk.
There is no doubt that one of the biggest mistakes that many businesses make is to not conduct a company credit check on the potential financial risk of a client or potential client prior to offering credit. The purpose of this check is simply to provide you, as the potential creditor, with the information to ascertain the viability of offering credit in any form to a company by gauging their current and previous financial commitments and if there have been any issues that you need to be aware of such as charges or unsatisfied CCJ’s.
The reality is that it should be an essential part of your credit risk strategy, to ensure that each potential client is assessed for their credit worthiness and to enable you as the potential creditor make an informed credit decision. Taking this credit management approach has multiple benefits, from the obvious benefit of ensuring a healthy cashflow position through to reduced levels of debts and the relevant processes involved in recovering the debt. When taking into account the time taken to try to recover debt, through emails, letters and phone calls and potential litigation, the benefit of company credit checks becomes apparent.
There are a number of types of company credit check reports which are purely dependent upon the kind of information that you require. These include statutory reports, which detail registered and trade names as well as incorporation dates and address.
Risk reports provide a risk score and recommended credit limits whilst also providing information on detrimental information such as unsatisfied CCJ’s (County Court Judgements)
The third type of report is the ownership report, which contains information relating to the group structure, holding or parent companies as well as any financial details such as mortgages, charges and unsatisfied CCJ’s.
All of these reports are available through us. Cash Protection Agency is an FCA approved debt collection, credit management agency with more than 20 years experience in delivering a range of credit management services including company credit checks. Simply contact us for further information or to order your company credit check.