credit checking a Ltd Company

[Matt1959]

Sorry to be dense, need a bit of help on something - I assume its possible to credit check a limited company? and if so how? If the Company was formed just 5 months ago will such a credit check mean anything? Equally, can the directors be credit checked? and if so, how? I just want to find out if there are any nasties regarding a certain company but I have no reason to think theres anything amiss - just want some extra reassurance....

Thanks

 

[IGElComms]

Hi first post, found this site lying ignored in bookmarks, but hope this helps.

I use checksure.biz for all my UK credit checks, you get a free summary and can purchase various levels of details.

I have used the information provided to check unknown companies and as information source for interviews.

Actually put the wind up an interviewer, as I asked why they changed directors every 2 years, aah the look of horror on his face still raises a smile.

Hope this helps

 

[GRDCredit]

Sorry to be dense, need a bit of help on something - I assume its possible to credit check a limited company? and if so how? If the Company was formed just 5 months ago will such a credit check mean anything? Equally, can the directors be credit checked? and if so, how? I just want to find out if there are any nasties regarding a certain company but I have no reason to think theres anything amiss - just want some extra reassurance....

Thanks

Any limited company can be credit checked. However, if it has only been established for 5 months then don't expect a credit limit of £50,000 to be recommended!

Many companies out there will do a credit check for you (Creditsafe lurk on here I think so have probably already been trying to get hold of you!) or I might be able to help - see PM sent.

 

[Chris Ashdown]

5 months will get you no data, they need to have been trading past their first year (maybe 18 months) to publish accounts and probably a bit longer for credit companies to tell you anything

All yo can realy do is ask for say 4 references (normally 2) and phone up and ask how they find them on payments and the big one how much the company have purchased from them in last 5 months

Nothing to stop you asking for cash up front or a large deposit, most new companies know they will not get credit terms in this financial climate

 

[GRDCredit]

5 months will get you no data, they need to have been trading past their first year (maybe 18 months) to publish accounts and probably a bit longer for credit companies to tell you anything

All yo can realy do is ask for say 4 references (normally 2) and phone up and ask how they find them on payments and the big one how much the company have purchased from them in last 5 months

Nothing to stop you asking for cash up front or a large deposit, most new companies know they will not get credit terms in this financial climate

Information you will receive however is details of any CCJs (one would hope after 5 months there won't be any but...!) and the names of directors and shareholders. Searching on these may bring to light previous company that has gone bust etc.

I confess I don't like trade references unless you can speak one to one off the record. Who is going to give you a name of a supplier if they know that supplier will not give a good reference?

 

[bobb42]

I agree that there will be very little finacial data on a company that is 5 month old, From experiance I find that there are three main Credit Reference Agencies, 1) Dun & Bradstreet, 2) Experian and 3) Equifax. these three agencies can hold very different data on companies as there credit rating scores are calculated differently, Ie, Equifax tend from experiance to give a higher credit score/rating that the other two.

I hope this helps.

 

[snipe12]

It's pretty much a waste of time and money no matter how long they have been trading these days.
It takes so long for the records to be updated that often companies in trouble show no issues until it is too late.

Just ask for the first four orders to be pre-paid, it's common practise and if they wont then you know something is up.

 

[GRDCredit]

It's pretty much a waste of time and money no matter how long they have been trading these days.
It takes so long for the records to be updated that often companies in trouble show no issues until it is too late.

You are of course entitled to your opinion..............

 

[Matt1959]

Many thanks to Geoff of GRD Credit Services here, who has done some credit checking and given me the info that I needed. Very speedy service for a competitive fee - well impressed

 

[Geoff T]

Hi,

The other option is to go to the source! Companies House (google gets it within 3!) is where the credit firms get their info, and £1-£2 will get you confirmation that the company exists, but - as was said before - credit ref companies do check other data too, so they can be useful!

Companies House get the info 1st, so this will avoid the "crucial info delay" mentioned before. But for me, if you want the best idea of a new company's "worthiness", it's to have a nose around their office/depot/whatever. You'll find you get a better "feel" for the firm - e.g. is the office well organized? (piles of paper lying around tends to indicate disorganization=late payment), Is the location looking cheap/run down, while the owner/director is running around in a Merc? (SHARK!)

Bottom line is - when you will start making a profit from the account, and is the risk worth taking? If not, then run! If your gut tells you it's worth a go, then do! Just don't blame anyone else if it does - remember who made the decision to offer the credit!

regards, Geoff

 

[cmcp]

On the subject - I'm sole trader at the moment.

I've been meaning to set up a limited company so in a year or so's time I can apply for government contracts.

What sort of account info can be obtained from companies house on my accounts? Just final balances? What I'm thinking is I'll be turning over tiny amounts for a while. Will people be able to see that at the end of the year, like amount turnover?

Thanks

 

[Geoff T]

Hi,

Don't worry about it too much, the small companies do not have to give full info if they're below a certain size, it's called "small company exemption", and you don't have to declare turnover - or some other stuff - until the business gets to a certain size.

Your accountant - if you have one - can talk you through this in more detail.

Regards
Geoff

 

[Michelle Carvill]

Hi there
Initially in this post I mentioned that I was working with a client soon to be launching a very competitively priced and comprehensive range of company credit reports. Well their site has now gone live http://www.companysearchesmadesimple.com and you can claim a Free Fully Comprehensive credit report if you want to check out the service.
Best wishes
Michelle

 

[Shaun_Pearce]

It's pretty much a waste of time and money no matter how long they have been trading these days.
It takes so long for the records to be updated that often companies in trouble show no issues until it is too late.

Just ask for the first four orders to be pre-paid, it's common practise and if they wont then you know something is up.

Can i ask what provider you are refering to? As discussed on a different thread there are services within a credit report that comes much quicker than the likes of companies house. CSUK provide a media solutions system which monitors and scans 52 thousand different sources including local magazines and newspapers as well as internet sources.

For example if your clients are'nt local to you and you don't pick up the local press in their area which clearly covers that they are making X amount of staff reduntant or sacking management, wouldn't you like to know this? I know I would.

There are affordable systems available to suit the needs of any business. If you are not convinced then please be my guest and contact creditsafe and ask for a run through of their system.

I was a previous employee of the company so god knows what other services they have added.

 

[TimE]

I agree. Little info available on a company so new. However, I have found out interesting and unusal facts in the past such as the people who claim to be the owners and Directors are actually not - their husbands or wifes have been. It throws up questions as to why someone would do that?!

If you are concerned about offering credit you have to stand by your terms and enforce them if they do not pay on time. Maybe ask for cash up front for the first few orders.

The chances of business failure are much higher in the first 12 months so keep them on atight leash - as you should with all your customers!

 

[snipe12]

Can i ask what provider you are refering to? As discussed on a different thread there are services within a credit report that comes much quicker than the likes of companies house. CSUK provide a media solutions system which monitors and scans 52 thousand different sources including local magazines and newspapers as well as internet sources.

For example if your clients are'nt local to you and you don't pick up the local press in their area which clearly covers that they are making X amount of staff reduntant or sacking management, wouldn't you like to know this? I know I would.

There are affordable systems available to suit the needs of any business. If you are not convinced then please be my guest and contact creditsafe and ask for a run through of their system.

I was a previous employee of the company so god knows what other services they have added.

A few but the ones I used to use were Experian. Credit checks are a back-up but not to be relied on. I know of a couple of companies who have been on their knees but their credit reports have still been perfect, in fact better than mine! One company I supplied, an employee warned me they were not paying bills anymore and debt collectors had been through the door. Their credit report was still showing as good and did so for about another two months. They managed to drag it on for 6 months before someone said enough is enough and pushed them in to bankruptcy.

I am not against credit reports and think there is still a place for them, just think proforma and proper credit control are far more important.

 

[Michelle Carvill]

Hi there
Not sure if you have checked out this site yet www.companysearchesmadesimple.com - on here you can test the company report process - as they offer a Free Company Credit Check - you simply register (name and email address) and then you can search for any company you require. The range of reports start at very low cost - you can check a company from as little as £3! Worth a look... I've used them for the last couple of companies I've checked. No complaints so far...

 

[Shaun_Pearce]

A few but the ones I used to use were Experian. Credit checks are a back-up but not to be relied on. I know of a couple of companies who have been on their knees but their credit reports have still been perfect, in fact better than mine! One company I supplied, an employee warned me they were not paying bills anymore and debt collectors had been through the door. Their credit report was still showing as good and did so for about another two months. They managed to drag it on for 6 months before someone said enough is enough and pushed them in to bankruptcy.

I am not against credit reports and think there is still a place for them, just think proforma and proper credit control are far more important.

These things happen and I agree that good credit control is very important and I would urge any business to get hot on their credit control.

I'm sorry to hear about that company you supplied and unfortunately these things happen. You are right there is a place for credit checking. 800 CCJ's are registered every day and I for one would want to know if any of my clients had one. I would alos like to know if any of my clients have filed their accounts to take a look as well as any media coverage that may be on my clients that have risk terms in them.

You are bang on in regards to your credit control and proforma but there is a place for credit checking as you say.