What is a Business Credit Report?
Business credit reports - also known as Company Credit reports, or Commercial credit reports - provide comprehensive information about a company and its directors helping you make informed decisions on who you do business with. It also helps financial institutions make credit decisions.
How can I get my business credit report?
There are a few online solutions in the UK to check your business credit score and get a report from that. You can see your business credit report for free with Complygate. We offer a one-time opportunity for businesses, to get 2 business credit score checks at no cost. You can find out more about it here.
Check your Complygate business credit score to learn how lenders, suppliers and customers see you when making credit decisions.
How do Lenders use business credit information?
Lenders use credit information from Business Credit Report while screening for credit risk and affordability of a company. Therefore, it can affect how prompt companies are to be able to access a range of financial solutions, including loans, mortgages and credit cards and, sometimes, it may also influence how much they pay for them.
Companies with poor or average credit score often pay higher interest rates.
Why should I check my Business’ Credit Score?
Knowing your organisation’s credit score is key to the financial health of your company. Depending on the reports of your business’ credit score, there can be a variety of ways in which your company might be impacted. Such as – as previously mentioned - how much credit your suppliers would extend you, the rates on the interest that you would have to pay, etc.
Company Credit Reports help you:
- Verify that a company is real,
- Check a company’s credit score,
- Verify the identity of a company’s directors,
- Check true ownership structure,
- Check for CCJs, CVAs and late or missed payments.
What is a Credit Reference Agency (CRA)?
A credit reference agency (CRA) is an independent company that collects and stores data regarding you – including data regarding things such as your previous accounts, credit applications, , your credit risk, credit score and even financial behaviour.
When a company applies for any type of credit – whether it is for a credit card, loan, mortgage, etc – credit reference companies and the organisation offering the financial product join efforts to collect relevant data about your business.
What is Commercial Credit Data Sharing (CCDS)?
Commercial Credit Data Sharing (CCDS) - which went live on 01 April 2016 - is a mandatory scheme from the UK government about credit data sharing, which is found under the Small Business Enterprise & Employment Act 2015, with the purpose of encouraging competition and new entrants in SME lending markets.
The CCDs scheme made it easier for new age challenger banks and alternative finance providers to check credit worthiness of potential business customers in real-time.
Under CCDs scheme which nine banking institutions share their SME customer credit data?
- AIB Group (UK) Plc (t/a First Trust Bank)
- Bank of Ireland (UK) Plc
- Barclays Bank Plc
- Clydesdale Bank Plc
- Northern Bank Ltd (T/A Dankse Bank)
- HSBC Bank Plc
- Lloyds Banking Group Plc
- Royal Bank of Scotland Group Plc
- Santander UK Plc
Which are the four designated Credit Reference Agencies (CRAs) under the Commercial Credit Data Sharing (CCDS) scheme?
- Credit Safe Business Solutions Limited
- Dun & Bradstreet Limited
- Equifax Limited
- Experian Limited
Would you like to learn more about Company Credit Reports?
This has been a short introduction to what Business Credit Reports are, and how it can help businesses.
We have recently incorporated an online solution to help businesses check the credit score of their company and/or any other organisation.
We offer the first 2 checks for free, so you can try how it works, and get to decide if this solution would, in fact, be beneficial to your company. With this solution we want to help companies:
- Learn how creditors and suppliers view their organisation and how to improve their credit score from the insights included in the report;
- Avoid making transactions with organisations that are at risk by making informed decisions;
- Be informed of the credit score of clients, suppliers and competitors.