Credit scoring for companies, how does it work

[workmanmark]

We're the claimant in a legal action against another company, with the final hearing taking place in a couple of week…but that fact's really by the by.. What we have noticed is that this companies credit score has dropped quite drastically in the last couple of months. BUT…they haven't filed any new financial information….don't have any judgements against them…and there's nothing else obvious that would have caused them to drop.

My question is (to anyone who knows): how are companies credit scored, after you've taken accounts and/or negative legal actions into account.. what else affects a companies credit score? and where do the agencies pick that information up from?

Cheers in advance for any comments

Mark

 

[Carl S]

Hi Mark,

From my experience you'll never get a credit agency to tell you exactly how their score works because they always make them out to be extremely complex, the best on the market and most customer protective (when in fact their all pretty much the same) . As you mention they take on board latest financial information (if posted), claims against etc but also they receive data feeds from their customers, which has ledger information overdues, size of debt etc. Could possibly be that this customer is defaulting on payment to a number of suppliers and therefore this is feeding through? For some companies, depending on their size also have media information, market information, country information all booked against them. My suggestion would be If you bought a report, or have a contract with someone (D n B, Equifax), they should have a customer services department who would be able to give you a little more detail i would have thought.

Thanks
Carl