How to Check Company Credit Rating for freeChecking the creditworthiness of the company free of charge
Name of company, company register number, address of registered office, company status, creditworthiness. Immediate credit check of company management.
BACS research suggests that UK companies on average devote four working days a week to tracking delayed pay. A credit controls guideline makes your accounts receivable more efficient and reduces this amount of work. And, the more clearly you set your customer payoffs, the better the company can cut its old debt and improve its cash flow positions.
Sound and clearly delineated credit controls are the cornerstone of your credit controls functions. We have described the five most important stages in drafting this guideline and even provided a draft to help you get more effective pay. Your credit management policies are based on establishing yourself as a company and deciding on your in-house credit management process, how to systematise it and who is doing what as a group.
Describe clearly each level in the credit review line-up - and highlight each and every move from initial billing to successful payment. Document this in a system chart - and get a systematic overview of the credit monitoring and debt processing functions.
Prior to winning a new client, it is good business to check the company's creditworthiness and make sure that it is able to settle your bills - which reduces your exposure to delayed payments or, even more importantly, outages. In order to convey this in your policy: Describe why credit assessments are necessary - and how credit and rating reviews help to keep both sides up to date on payments.
List the credit verification service (s) you use - with a full description of your credit verification procedure and the provider(s) you use for your verifications. Graydon, Experian and Company Check can do these credit assessments for you. Integrate cheques into your business and continually check the creditworthiness and credit limits of your customers, so you won't be surprised when their ratings fall.
Your general business term (GTC) in your contract and bills should include schedules, method of payments and expectation about how and when your customer must pay their bill. Periods and dates of payments - indicate whether you are expecting to receive payments within 30 or 60 or 90 workingdays after you have received the bill.
Delinquency surcharges - Lists any surcharges or extra charges that may be incurred if an item's delay in paying exceeds your stipulated conditions. Evaluate how your liabilities escalate - if a delayed payout is not paid within your specified deadlines, tell us how the liability is collected and who is in charge of the recovery procedure - you may want to transfer it to a recovery agent.
Providing credit lines to privileged clients can be a way to establish a trustworthy business relation and promote increasing revenues. However, it is important to ensure that the risks are minimized before you sign a credit arrangement with your clients. When you offer credit, there are some important things to follow:
Perform a credit check - and convince yourself that the client has a good rating and can pay your invoice within the stipulated periods of your general conditions. Encourage clients to complete a credit contract - arrange payment conditions, and if the client's company has hard commodities to turn into money, consider requiring the landlord to provide a personally-guaranteed line of credit for each line of credit you draw on.
Establish clear credit lines and conditions of payments - so the consumer knows his line and your credit review staff knows how much the consumer can borrow. Selecting the right billing methods is an important part of making sure your company is paying on schedule. Some companies may offer credit cards as the most efficient way to pay, while others may offer direct debits on a per-month basis.
Make sure your clients are paying you through the right channels: Describe your methods of payments to us - and tell us whether you opt for wire transfers, permanent orders, direct debits, credit cards or an on-line payments portal. Provide your clients with the billing information they need - with the appropriate routing numbers and accounts numbers, link to any direct debit order from GoCardless or link to billing pages used on your website.
Working through these five critical stages and combined with our free credit controls templates, you now have a basic set of principles that contain all the keys to your credit controls functionality. Consumers know when to make payments, which method to use and, in the worse case, how to track them.
Please note: The credit controls templates are intended as a point of departure and have not taken into consideration your individual needs. You are advised to check your guideline with your accounting clerk or clerk once you have customized it for your company.