TT284: Credit Ratings

December 18, 2018

Credit ratings are an essential part of business and have a significant impact on financial decision-making from SMEs to large multinationals.

Here at Barnes Roffe we are often asked to obtain credit reports for our clients and help to quickly evaluate financial health and enable confident credit related decisions to be made.

One of the key tools at our disposal is instant access to the full database of one of the biggest credit rating agencies in the market, Dun and Bradstreet. With the largest global commercial database on the planet extending to over 300 million business records worldwide, we can harness this data to help assist your business decisions.

There are several reasons almost all businesses will require credit reports; from assessing how much credit to extend to a new customer, to obtaining credit insurance, to providing a report on your own business to support a tender, to conducting due diligence on a competitor or potential acquisition.

Not only can we supply the information you need, but through our understanding of the key driving forces which shape credit ratings we can share our experience and knowledge to help you analyse the multitude of parameters which impact on it.

In fact, this is just the start of where we can add real value to your business. Specifically, support on how you can actively improve your own company’s score.

Far from purely being based on historic publicly available financial data, many other factors are taken into account and have a significant impact; from outstanding CCJs, to late filings at Companies House, to the strength of the Board of Directors.

Agencies like Dun & Bradstreet also take a sample-based approach to assess the likelihood of paying debts within agreed credit terms, often using payment information collected from partners, e.g. one of your suppliers! Extrapolating such a small sample can have a huge impact on your perceived credit-worthiness.

If a strong rating is essential to your business, then it is essential you carry out regular health checks to pinpoint the key areas you need to focus on and make the improvements necessary to trade successfully.

If the above chimes a chord with you, please contact your partner at Barnes Roffe today to explore further.

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