Most Important Things To Look For In Business Credit Report

Introduction

When carrying out credit checks on potential and existing customers you will almost always be drawn to the credit limit of the company and feel assured that if the credit agency states a credit limit then that is all you need to look at, this is not always the case.

This blog looks at some of the other main factors that we suggest are looked at when carrying out credit reports and setting credit terms for customers.

The following points will give you a better view of a respective company as a whole and ensure that you are more aware of potential risk of failure:-

1). Age of Company: This will give an indication if a company has operated for a substantial amount of time, where the likelyhood of failure is statistically less than a newly incorporated company.

2). Filing Dates of Annual Accounts and Returns: Statistically companies who file financial information close to or beyond the year end date are more likely to file poor financial information.

3). Group Structure/Share Capital: If a company is privately owned or as part of a group can give and indication of the likelyhood of failure.

4). Derogatory Information: Within a credit report there will be a section for derogatory information and within this section it will show and CCJ's, Winding Up Petitions, Liquidations and Receiverships.

5). Director Database Information: Within our credit reports we offer a full director database check on the director of said company, this will enable you to look at this Director's other limited companies and show you the credit limit associated with these companies. 

6). Financial Information: Looking at a company's balance sheet and if available profit and loss account will give you a detailed picture of the subjects financial position at the time those accounts are filed at Companies House. Please keep in mind that limited company filing regulations state that a limited company has 9 months from year end date to file the next years accounts. Therefore financial information becomes historical.

Creditserve offers online credit reporting packages to suit all requirements and budgets so please feel free to visit www.creditserve.co.uk or contact me directly on 01992 414222 or email martin@creditserve.co.uk for a free no obligation demonstration.

Online Credit Checking Is The Simplest & Most Cost Effective Way To Protect Your Sales Ledger!

There are many ways to secure your own companies sales ledger and protect your company against bad debt from credit insurance policies to outsourced credit control functions.

These choices are in themselves good options, however these two specific ways to ensure you are protected are very costly and have their own pitfalls.

Creditserve offer a cost effective online credit checking facility which is both simple to utilise and cost effective no matter the size of your company. Our options can vary to suit the individual customers needs, but in all cases we do not compromise on the quality of our reporting data and our acceptional customer relations is second to none.

Creditserve offer a spectrum of searches and systems which include the following:-

Unlimited access to limited company credit reports in UK and Republic of Ireland.

Unlimited access to unincorporated company credit reports in UK and Republic of Ireland.

Unlimited access to director database reports in UK and Republic of Ireland.

Access to Companies House documents.

Instant online access to overseas credit reports throughout Europe and USA.

Investigative reports on companies in any country worldwide.

Debt recovery carried out on a no collection no commission basis.

Consumer credit reports (data protection license required) available.

Anti Money Laundering checks available. 

If your company is in need of obtaining quality business/consumer information and wants to reduce your current annual contract spend or if you have yet to utilise a credit reporting system then please visit www.creditserve.co.uk for more information or simple email martin@creditserve.co.uk for a no obligation trial and quotation.

Not only can we offer all of these services but we also guarantee to reduce your current annual agreement by at least 25%!!!

A bit of fun!

Obviously with Mr Franklin endorsing our product I just wanted to inform you that we have an offer on our uk business credit reporting - £350 gets you all of the below:-

Unlimited access to any UK limited company

Unlimited access to over 3 million non limited businesses

Unlimited access to director database information

Access to 200 companies house documents

Unlimited access to company monitoring

Debt recovery on a no collection no commission basis.

Just email martin@creditserve.co.uk or visit www.creditserve.co.uk for more information. You can also follow @creditserve on twitter or Facebook to receive daily updates and offers.

The Four Pillars For A Successful Credit Control

Many thousands of businesses go bust every year simply because they are owed money and can’t juggle the cash flow. Systematic, well planned credit control practises must be put in place right at the start otherwise your company will join the mountain of other failed firms. Checking references, getting credit reports and examining company business information is a sign of strength for a business and lets your customers know you are serious about credit control

1. Get a detailed application form filled out correctly by your potential customer.

So many businesses are in the rush to get orders that they do not do the necessary groundwork when setting up customers, in some instances not even knowing the correct legal entity or billing address. All of these minor details can slow up getting paid on time!

2. Do the necessary credit checks on ALL customers small or large.

When you are looking to supply a customer you need to carry out a credit report, these reports are instantly available through credit reference agencies online and can be purchased on a 'Pay As You Go' basis at under £10 per search or within bundles which can cover you for a years unlimited credit reports. 

In my professional opinion the bundles are the way to go as you get so much more within them.

3. Stick to your credit limit and credit terms.

From the outset you will need to be tough as customers will look to bully or bluff a higher credit limit from you, so stick to your limit! This also happens when it comes to payment with some customers looking to set their own terms of payment. You will need to be firm and not waiver because if you allow them an inch they will no doubt take a mile! 

You could even make a telephone call or send an email gently reminding your customers that payment is due on a certain date, this shows good customer relations but also that you have your finger on the pulse.

4. Don't be afraid to use debt recovery agents to recover outstanding monies owed to you.

This is one step that businesses do not grasp as much as they possibly should. You can utilise the professionalism of an outside debt recovery agency without costing yourself or your company time and lots of money. Any debt recovery agency worth its sort will not charge upfront fees, they simply apply a commission charge if and when they are successful. 

Obviously doing the chasing and sending letters has an expense to yourself so if you are getting nowhere with a delinquent debtor why not pass it on to the agency and let them recover the money for you. 

Usually a good commission rate is between 7 - 12% on any monies recovered, but remember it is your right to add costs and interest to the debt from the date it becomes overdue.

If you would like to know more or have any questions please email me on martin@creditserve.co.uk or follow me on twitter @creditserve

Top 10 Tips For a Secure Business Future!

Creditserve provides an online, affordable and up to date credit checking system which allows you to carry out credit checks on your new and existing customers and/or suppliers to ensure they have the financial means to honour payments/contracts.

Key Features: 

• Instant credit checks online
• Full range of credit reports
• Discounted rates
• Up to date information
• Debt recovery service

Instant credit checks online 

Clients can access Creditserve online credit checking service for instant reports on a company’s or an individual’s credit rating and history.

 

Extensive range of credit reports 

Reports range from in-depth business reports, including full accounts and credit ratings, through to simple registered information, we also offer Companies House documents and monitoring service.

 

Beneficial rates 

We offer extremely cost effective rates for one off credit checks. Regular credit checks should form part of your credit management routine on new customers, defaulting customers and those seeking an increase in their credit limit and therefore an annual subscription is often the most cost effective way to credit check your customers and suppliers.

 

Up to date information 

Our range of credit reports are updated on a live feed to ensure they include the most recent and accurate information.

 

Debt Recovery Service

Creditserve also offer this back up service to the online credit reporting and work on a no collection no commission basis. We work on all cases on pre legal basis and add costs and interests to the debt value which you are entitled to from the time the debt becomes overdue.

 

Crucial Top 10 tips for all credit control departments:- 
1. Always perform credit checks to ensure you know your customer 
2. Get your customer to complete a credit application form 
3. Wherever possible obtain a personal guarantee from company directors 
4. Get a signed contract incorporating your terms and conditions 
5. Give your customer a credit limit and review this regularly 
6. Invoice on time and ensure details are accurate 
7. Phone your customers before payments are due to ensure there are no queries 
8. Send monthly statements 
9. Use properly drafted collection letters 
10. Consider outsourcing your non paying accounts to a reputable debt collection agency like Creditserve Collections

If you would like any further information please feel free to contact me on 01992 414222 or emailmartin@creditserve.co.uk LinkedIn Martin Brown or follow on Twitter @creditserve

Do You Want To Know Your Company Credit Score And Credit Limit?

Being a business owner or principle you will know the day to day operations of your company better than anyone else, however do you know what your customers or suppliers are seeing when they carry out a credit report?

So many companies are preoccupied with how they view themselves rather than how their customers and suppliers do. Be sure about one thing, that your customers and suppliers will be looking at your company financials and credit limits and credit score before you even know.

Our experience tells us that it is much more beneficial to understand what your company financials look like so you can see where the company needs to improve, what changes to filing need to be made etc. 

So many limited companies allow their accounts to become out of date or overdue therefore reducing any credit limits and risk scoring, this is sometimes unintentional and can be avoided. 

By carrying out a credit report on your own company you can be ahead of the game and ensure you are better prepared if questions are asked of you, again showing a professional manner of business and putting potential business partners at ease. There is nothing worse than speaking to a company principle without them knowing exactly what you need to know.

So what do you get in limited company credit reports? Please see the list below:-

Full UK company incorporation details

Details of individual directors and shareholders including other directorships in other companies

Details of the companies mortgages and charges

Five years of financial information (where available), including Profit and loss (where available) and Balance sheet.

Legal notices

County Court Judgment information and High Court Writ Information

Up-to-date and historic credit limit

Up-to-date and historic Credit Rating Risk Score 

Options to monitor the company for email alert updates

If you would like to view your company report please just visit www.creditserve.co.uk/online-shop and you can search instantly for a credit report on any UK & Republic of Ireland company.

Company House Filings relating to UK SIC codes.

This blog is to discuss UK SIC codes beings that more and more recently we have experienced companies either filing under incorrect UK SIC codes within their annual return creating confusion when applying for trade accounts.

Companies House and SIC 2007

The United Kingdom Standard Industrial Classification of Economic Activities (SIC) is used to classify business establishments and other standard units by the type of economic activity in which they are engaged. The new version of these codes (SIC 2007) was adopted by the UK as from 1st January 2008. This Q & A notice explains why we are replacing the SIC 2003 codings with the SIC 2007 codings for companies to use when giving their principal business activity.

1. What is SIC 2007?

It’s the latest version of the Standard Industrial Classification which was last revised in 2003. It’s a numerical classification that Companies House adopted to identify company principal business activities which are required to be stated on the annual return (form AR01) each year. The new classification system was adopted by the UK on 1st January 2008.

2. When did Companies House adopt SIC 2007?

We adopted SIC 2007 from 01 October 2011. Companies are required to change their SIC code to the latest classification (SIC 07) upon filing their annual return with a made up date of 1st October 2011 onwards.

3. What are the changes to Annual Return information required in the Companies Act 2006 (Annual Returns) Regulations 2011?

The new regulations contain changes to shareholder details required on the annual return with made up dates 1st Oct 2011 or later which can be summarised as follows:

For returns made up to 1st October 2011 or later:

a) Companies whose shares have not been at any time admitted to trading on a relevant market must provide a 'full list' of all shareholders on the first annual return following incorporation; and thereafter on every third annual return. Any details of transfers of shares that have taken place during the year will be required for intervening annual returns

b) Companies any of whose shares have been admitted to trading on a relevant market, must provide the names and addresses of shareholders who hold 5% or more of the company’s issued share capital as at the made up date of the return every year. The Regulations remove the requirement for a full list every third year and details of transfers of shares that have taken place to be shown on intervening annual returns

c) Companies any of whose shares have been admitted to trading on a relevant market throughout the return period and who were subject to the Vote Holder and Issuer Notification Rules contained in Chapter 5 of the Disclosure and Transparency Rules source book issued by the Financial Services Authority (DTR5) throughout the return period; shareholder details do not have to be provided. Since September 2010 all major shareholder notifications required under DTR have been available online on the National Storage Mechanism ; this means that there is no longer a significant public interest in Companies House holding historic information on the holdings of major shareholders of companies subject to DTR.

4. Apart from the Annual Return, are there other forms that should be using SIC 2007 after 01 October 2011?

The new SIC 2007 codes should also be used on the following forms; SE FM01, SE FM02, SE FM03, SE FM04, SE FM05, SE TR02, and SE TR03

5. Where can I get more information about SIC 2007?

The website of the Office for National Statistics

Alternatively contact ONS by email: classifications.helpdesk@ons.gov.uk

Please feel free to contact us relating any company filings whatsoever as we can provide up to date hard copy filings direct from Companies House either on a PAYG basis or within packages via www.creditserve.co.uk. 01992 414222

Polish Company Information Filing Requirements

Please feel free to view the blog below written by Creditserve Business Information Ltd relating to Polish Business Credit Reports-

http://www.creditserve.co.uk/Media-Centre/Blog/April-2013/Online-credit-reports-on-companies-in-Poland


If you need any further help please contact me direct

martin@creditserve.co.uk / 01992 414222 / LinkedIn / Facebook

Creditserve Offer Of The Week

For the month of March Creditserve are offering unlimited online credit checks for UK and Irish Businesses, 10 online overseas credit reports, 100 consumer credit checks and access to our debt recovery department on a no collection no commission basis for a one off annual subscription of £750 + VAT!!!!!

UNLIMITED UK & IRISH BUSINESS CREDIT REPORTS

These reports include Statutory Information, Risk Score and Credit Limit, Shareholder and Group Structure, 5 Years Full Profit and Loss and Balance Sheet, Industry Average Ratios, Company Director Information, Company Monitoring. We also offer non limited credit reports via this same system.

10 ONLINE OVERSEAS CREDIT REPORTS

The countries in which we can offer instantly available online business credit reports are Belgium, Czech Rep, Denmark, Finland, France, Germany, Iceland, Italy, Lithuania, Malta, Netherlands, Norway, Poland, Slovakia, Spain, Sweden, Switzerland and USA.

100 CONSUMER CREDIT CHECKS

Our consumer credit checks are essential when dealing with non limited entities or if you have guarantees in place for directors. These credit reports include the following information: Confirmation of Name and Address, Electoral Roll Confirmation, Insolvency, County Court Search, Address Links, Geo Demographic Profile, Consumer Search History and Credit Score.

ALL FOR £750 + VAT !!!!

Feel free to contact martin@creditserve.co.uk or 01992 414222

The Corporate Version of Phoenix From The Flames...

In mythology, a phoenix is an immortal bird that, when it dies, bursts into flames and is reborn from its own ashes. "To rise from the ashes of the phoenix" means to make a miraculous comeback.

We are all well versed with the saying 'Phoenix From The Flames', however the meaning has taken new form recently with the corporate world seeing more and more limited companies failing and then resurfacing shortly after under a very similar limited company name, with the same business shareholders and directors!.

Now companies that fail for whatever reason is not new as new statistics tell us that 50% of new businesses do not make their 3rd birthday. This is quite a staggering statistic, however we all know that for whatever reason there will always be businesses that cannot continue to trade.

There are some ways of protecting your company against this form of injustice, one way would be to carry out extensive credit checks prior to dealing with your customers. Credit agencies offer online facilities to obtain instant credit information. These credit reports are generally well detailed with financial accounts, shareholder information and director information, within the director information you will be able to view other limited companies that the respective directors have operated and their current credit limit and status.

These online credit checking agencies provide what is called a monitoring service which will keep you informed via email of any changes which happen to your customers and therefore will keep you up to date with important

Creditserve offers various credit reporting solutions which can assist in making initial credit decisions, maintaining account management through company monitoring, group structure credit reports, director database reports, companies house documents with our professional debt recovery department as a back up to the online credit checking facility we offer.

There are packages to suit any size company or budget and our credit reports are of the highest standard which makes Creditserve one of the fastest growing credit reference agencies in the UK.

If you would like more details on any of our services whatsoever please do not hesitate in contacting us through sales@creditserve.co.uk, LinkedIn Page Creditserve Business Information, twitter@creditserve1 or on 01992 414222

Company Monitoring And The Benefits Of Keeping A Beedy Eye On Your Customers, Competitors and Suppliers

This blog is written to give an insight into the whys and wherefours of monitoring your customers, competitors and suppliers financial information.

In the current financial climate it is wise to carry out the relevant credit checks and run credit reports to ascertain whether you are putting your own company at risk by dealing with potential new clients or suppliers.

However, it is just as important to monitor your new customers and suppliers once you have extended credit terms to them, a company that seems secure at first may indeed see changes to their own business which can directly affect your own.

Below are the reasons for change within companies which can directly affect you:-

Filing of Annual Accounts
Filing of Annual Return
County Court Judgment/ Derogatory Information
Change of Directors
Group Ownership/Shareholders

Company monitoring allows these changes to be sent automatically to you via email on a daily basis so therefore you will receive this information as soon as it is available through a live feed of information. You will be sure that the information sent will be backed up by filed information at Companies House, the registry trust or local gazette.

With this in mind this would mean that a company that has just had some derogatory information filed against them such as a CCJ, you would be in the best position to stop supplying and recover your outstanding monies, therefore negating finding out later on what has happened and potentially being at the bottom of a list of companies chasing their outstanding debts.

It is not always on the negative effect that the monitoring system can be used for, it may be a very helpful procedure when receiving filed accounts information, for instance if a company files a new annual accounts document and their company has grown their need for credit has potentially grown and you can benefit by looking to extend larger levels of credit should the company be worthy.

Credit reference agencies such as Creditserve allow customers to obtain access to monitoring facilities when a subscription is made to their online credit checking facility. These credit checking facilities are best used in an unlimited basis. Creditserve offer unlimited business credit reports on all UK and Irish limited and non limited companies, company monitoring, Companies House documents, director database, online international credit reports as well as consumer credit checking and AML (anti money laundering) checks.

Please feel free to visit www.creditserve.co.uk or follow on twitter @creditserve connect on LinkedIn Martin Brown or email martin@creditserve.co.uk

Spanish business information, credit checks and filing requirements.

Creditserve have a corporate website blog which discusses all forms of business information both within the UK and Internationally. This blog link will give details pertaining to Spanish company filing requirements.

http://www.creditserve.co.uk/Media-Centre/Blog/February-2013/Online-credit-checks-on-companies-in-Spain

Feel free to view our blog page and should you be interested in credit information, whether it be domestic or international please feel free to contact us direct on sales@creditserve.co.uk twitter @creditserve, LinkedIn Martin Brown or 01992 414222.