Credit Score

What is credit score?

A credit score or credit rating is simply an indication of the likelihood of the business facing financial difficulties.

Credit scores are rarely considered in isolation as they will change over a period of time as new information, such as the submission of company accounts, becomes available. Reviewing credit scores on a comparative basis also help in assessing a company's financial standing.

A low company credit score

Credit rating agencies do not include an explanation as to why, and so if you want more information regarding the reasons behind their score, please contact an accountant or business advisor.

How a credit score is calculated

The score is based on a company’s overall credit history and takes into account a number of variables such as financial history, current assets, liabilities, and auditors information to name a few. The credit rating is not universal but specific to each credit rating agency. While credit ratings from different agencies will most likely be very similar, they will not be the same, as each agency will have their calculations on how to measure credit rating.

Rating key for a company where Accounts have been filed
71-100 Very Good Credit Worthiness
51-70 Good Credit Worthiness
30-50 Credit Worthy
0-29 Caution – Credit at your discretion
N/A Reason will be displayed in the report (e.g., Liquidated, Dissolved, etc.)
Rating key for a new company where no Accounts have been filed
51-100 Low Risk
30-50 Moderate Risk
0-29 Caution – High Risk
N/A Reason will be displayed in the report (e.g., Liquidated, Dissolved, etc.)  

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