COMPANY CREDIT CHECK
keeps your cash flow healthy
Carrying out a company credit check should be a habit all businesses get into before offering credit for goods or services. It provides an integral part of keeping your cash flow healthy, but it’s something that is overlooked by many businesses and can cause serious problems down the line.
Whether an individual wants to open up a new customer account or if a business wants to extend their credit limit, it’s sensible and good practice to ensure that they are able to meet their obligations.
Carrying out a company credit check will allow you to make an informed decision when setting the credit limit for this new or returning customer. Carrying out these checks on returning customers is advisable on an annual basis or if they have become slower with payments as it will mean that you can adjust their limit accordingly and reduce the risk to your business.
Company credit checks will help to protect your business from the threat of bad debt. If you make it part of the process when taking a new customer on, it could not only save you time and money, but it will grant you peace of mind when carrying out transactions with the customer.
You wouldn’t expect to walk into a high street shop and be offered credit without a credit check first, would you? So make sure you regularly carry out your company credit checks.
COMPANY CREDIT CHECK FAQS
your questions answered
What is a company credit check?
Company credit checks allow you to gauge the financial security of a company you are about to offer credit to. It allows you to make an informed decision on the level of financial risk and whether you will offer them credit at all.
What information is on a company credit check?
Dependant on the specific information required, different reports are available:
- Statutory Reports – include Registered and Trade Names, address and company number including incorporation dates.
- Risk Reports – include recommended risk scores, recommended credit limits and a summary of any unsatisfied Court judgments.
- Ownership Reports – include details of the group structure including any holding or parent companies. This report will also include details of any outstanding mortgages, charges on the business and unsatisfied court judgments.
How much does company credit checks cost?
A company credit check is £20 + VAT and a consumer credit check is £20 + VAT. If more than 20 consumer credit checks are required per month we offer a reduced charge of £12 + VAT per credit check.: