Company credit reports are the simplest way to check the health of new or existing customers. There are many website who can supply these some of which require registration and the purchase of a pre paid package and some for a one off simple payment.
The informations used in company reports varies considerably across the world and the quality of this data also varies. Even within single countries such as the USA there is a variance in data across different states. Within Europe the situation is changing rapidly as the European Union tries to standardise accounting and reporting methodologies across the member states.
Common data used to analyse a company includes:
History of filing - were accounts filed on time and the historical pattern of filing data. There are statuatry filing requirements in most countries. See the UK requirements
Court judgements - in the UK, information is received from the Registry Trust about County Court Judgements or Scottish Decrees brought against companies for non-payment.
Auditors Qualifications - auditors can qualify their audit, if they have any concerns. There are five levels of qualification, with five being the severest and most alarming. More detailed information is available.
Financial measurements -
Certain key measures such as years trading, stability indicators such as the number of times Company Directors are apppointed or have resigned. Length of time at the same trading/registered office address.
Where a credit report show no credit score or limit, this is usually because of the following (note - this is the methodology at ukdata.com - other providers may vary):
Supporting links
On-line credit reports - http://www.ukdata.com
More about XBRL - http://www.xbrl.org
Worldwide Debt Management - http://www.coface.com
The informations used in company reports varies considerably across the world and the quality of this data also varies. Even within single countries such as the USA there is a variance in data across different states. Within Europe the situation is changing rapidly as the European Union tries to standardise accounting and reporting methodologies across the member states.
Common data used to analyse a company includes:
History of filing - were accounts filed on time and the historical pattern of filing data. There are statuatry filing requirements in most countries. See the UK requirements
Court judgements - in the UK, information is received from the Registry Trust about County Court Judgements or Scottish Decrees brought against companies for non-payment.
Auditors Qualifications - auditors can qualify their audit, if they have any concerns. There are five levels of qualification, with five being the severest and most alarming. More detailed information is available.
Financial measurements -
- Cash Flow - This is calculated as the Pre-tax Profit of the company plus Depreciation charged against that Profit.
- Working Capital - Calculated as the difference between the Total Current Assets and Total Current Liabilities.
- Net Worth - Calculated as the Total Assets minus the Total Liabilities where the former is also adjusted to eliminate any Intangible Assets.
Certain key measures such as years trading, stability indicators such as the number of times Company Directors are apppointed or have resigned. Length of time at the same trading/registered office address.
Where a credit report show no credit score or limit, this is usually because of the following (note - this is the methodology at ukdata.com - other providers may vary):
- There is insufficient information on a business.
- The business has more than 4 outstanding County Court Judgements in the last 6 months and less than 25 employees.
- The value of CCJs is greater than £2,000 in the last 24 months.
- There have been more than 3 CCJs in the last 12 months.
- There are more than 10 CCJs in total.
- There is not enough information to estimate financial strength.
- The business is engaged in certain financial activities, making an estimate of financial strength inappropriate.
Supporting links
On-line credit reports - http://www.ukdata.com
More about XBRL - http://www.xbrl.org
Worldwide Debt Management - http://www.coface.com
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