Free Credit RatingFree-of-charge credit assessment
It'?s credit. Their creditworthiness is an unbiased statistic assessment of your capacity to retire debts, on the basis of your borrowings and your payback record. Paying your invoices on schedule means that you are more likely to have a good credit and can therefore get favourable conditions for a credit or debit note, such as relatively low financing costs.
When your credit rating is bad because you have delayed paying your invoices or are in arrears with a credit, you may be given less favourable conditions or refused credit entirely. The creditworthiness of a company is an evaluation of whether it will be able to fulfil its liabilities to bondholders and other borrowers.
Corporate credit rating schemes typically vary from top end RAA A or RAAA to bottom end DR (for default). an evaluation of the credit worthiness of a business or person that indicates the level of CREDIT that a vendor can reasonably accept. Often a company's credit rating can be evaluated on the strength of information from the previous business year and the company's financial statements, as well as information provided confidentially by the company's financial institution.
In addition, there are a number of specialised rating agencies, such as Dunn and Bradstreet in the UK, which offer information on the credit standing of businesses for a charge. It is more challenging to judge the credit standing of single clients and is often predicated on some harsh information such as judicial insolvency procedures and failure information on lease-purchase contracts as well as on evidence such as the post office areas where a prospective borrower resides (e.g. a suburban or inner-city property).
Companies that have specialised in the collection and handling of such information make credit assessments available for a consideration. Pursuant to the conditions of the UK CONSUMER CREDIT ACT, a person has the right to view all credit records maintained by such company about him/her. Vendors use credit assessments as a means of calculating the amount of credit that a client can take as part of their CREDIT CONTROL process.