Credit Score

The credit score information we provide are different for Limited Companies and Unincorporated Businesses. Both types of scores have been developed by leading information providers. The number is calculated from a number of measures to predict the probability of a company failing within the next twelve months.

The average score forms the basis of comparison for all unincorporated business scores. The report will inform you of the comparison (e.g two or three times greater or lesser than the average). This provides an easy way to evaluate the risk in relation to all other unincorporated businesses. The average risk rate is higher for unincorporated businesses than it is for limited companies being 5.3% as opposed to 2%.

They are, however, measuring completely different criteria and evaluating different scenarios. The limited score predicts the likelihood of the company becoming insolvent, while the unincorporated credit score predicts the likelihood of non-payment of a debt. It maybe that you decide to continue dealing with companies operating with a greater risk than the average, but that you do so by setting higher prices, or shorter terms, so covering the greater bad debt risk rate. This is one way that we can help revolutionise your approach to managing your bad debt exposure with your unincorporated customer base.

Not all companies will have an entry or have limits (see below for more information on credit limits). This can be for any of the following reasons :-

Where there is no information :

  • There is insufficient information
  • The business has more than 4 outstanding CCJ's in the last 6 months and less than 25 employees
  • The value of CCJ's 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

Where there is no credit limit

  • There is not enough information to estimate financial strength
  • The business is engaged in certain financial activities, making an estimate of financial strength inappropriate