How to Maintain a Healthy Company Risk Score
Our rating algorithms are split in two for established
companies using the Companies House definition of a small
company for one and all medium and large companies in another.
Whether large or small, follow the advice below to ensure your
business retains a healthy credit score.
How to Improve Your Company's Credit Status
File Company Accounts Early
As the financials age, the score decreases. To prevent a
drop in score, small companies should file within 15 days of
the filing date. Filing late is the biggest contributor to
low credit scores. It is imperative that a company file
Accounts well before the due date to ensure Companies House
process and release the financial on time. Analysis has shown
that small sized companies who file within the final 15 days
of their due date are almost three times more likely to
become insolvent than a company who files in good time. For
large companies "No Rating" is provided if the accounts are
filed late. Ratio Analysis - Return on assets employed
Balance your Balance Sheet
Financial Performance has a large impact on the credit
status of a company. A decrease in turnover, profit and / or
cash figures may result in a decrease in credit score.
Minimise Changes within Officers of the
The number of directors and changes within the management of
the company is also considered.
Keep all your Companies in Good Standing
Director's history and performance - If a director is
associated with companies which are insolvent or have adverse
information this may affect the score.
Part of a Group of Companies? How are the others
If the company is part of a group, the companies within the
group will also be analysed to look for adverse information
such as insolvency.
Where the company is based may have an affect on the score
if the area has seen an increase in insolvencies
Keep on Track of your Mortgages
The amount and number of mortgages against the company will
affect the score.
Keep an track of your CCJ's and Debts
Exact match CCJ's are kept on record for 6 years, whether
they are satisfied or unsatisfied, unless they are settled
within one month. To reduce the impact on the score, settle
CCJ's within one month or as soon as possible.
Keep the Auditors happy
Comments from Independent Auditors - Any adverse comments
will affect the score.
Current Data Variables
- Industry insolvency trends - Analysis across the country
and carried out and adjusted quarterly
- Number of CCJ’s - The more County Court Judgements,
the bigger the affect on the score.
- Value of CCJ’s - The bigger the value of the County
Court Judgements, the bigger the affect on the score.
- Frequency of CCJ’s (how often and how recent?) - If
a company receives a number of County Court Judgements within
a short space of time, this would be considered an increased
- Time critical filings - Any documents which are over due
for filing at the registry would suggest an increase in
Industry Insolvency Trends
To ensure that latest credit ratings take into consideration
the problems that companies are facing in the current economic
climate, we have taken the results through an additional stage
of analysis to reflect the latest trends in insolvencies. The
ratings have then been further processed to reflect the
insolvency trend by industry SIC code ensuring that companies
in the worst affected industries have their ratings reduced
As a positive by-product of these changes we are able to
reassess the insolvency statistics quarterly and alter the
ratings both as a whole and by industry so that we continue to
have the most up to date and relevant rating possible.