help home Understanding Company Credit ReportsCredit reports from UK Data contain everything you need to know in order to make informed business decisions. Content is extracted from information filed at official company registries and government departments. Credit Rating | Credit Limit | County Court Judgments | Audit Qualifications | Company Types New Improved Credit Reports for 2010On January 1st 2010 we launched our latest predictive credit scoring model. The new solution further refines UK Data's market leading solution, enabling customers to make informed decisions about credit risk. Visit Our new predictive scoring model for more information. Credit Risk RatingThe company rating predicts the likelihood of a company going insolvent in the next 12 months. The UK Data credit risk rating scorecard was created by analysing companies over a period of one year using discrimination analysis to identify all the key data variables that are essential in predicting the probability of a company failing. These variables were then run against our entire database of companies to derive appropriate risk weightings through statistical analysis. These weightings are then combined with all the other variables in the scorecard to derive the final credit score. Some of the main variables used within the Limited Company report are:
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 appropriately. 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. 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. We also have a separate algorithm for Non Limited companies and for New companies (less than 22 months old and yet to file financials). How often is the Limited company score calculated?The Risk rating is calculated daily and is entirely automated, there is no manual calculation required to manipulate or adjust credit scores/ratings. Daily feeds are taken from our databases to update scores on a real time basis. If a company submits its latest accounts to Companies House, then as soon as these are available to the public (usually 10 working days later) the documents will be analysed within 48 hours and updated on the database. As soon as this is completed the company’s credit risk rating will be recorded/adjusted based on the latest filed accounts. The system also continually incorporates the following time critical information, which updates the credit scores on a real time basis:
Rating Definitions
Credit LimitThe company credit limit is our recommendation of the total amount of credit that should be offered to a given company at any one time. UK Data now calculate Credit Limits by looking at a company’s financial position in greater detail. By looking at critical credit information fields in conjunction with the credit rating of the company we can base a credit limit decision more accurately than previously. These fields include:
Typically if a company has a positive rating and the above financial fields are all of high values then you can expect this company to have a reasonable credit limit, if these values are low (or negative) then the credit limit decision will reflect this. The above financial items are standard for credit assessment terms. County Court judgmentsInformation is received from the Registry Trust about County Court judgments or Scottish Decrees brought against companies for non-payment. The matching is done on name only and shows exact, probable and possible matches. A judgment must be paid within a month of being issued. If the judgment is paid off within the month it is removed and will not be shown in the report. If the judgment is paid after one month then the details remain on the system but will show the judgment as satisfied. UK Data shows the total number of CCJ's, the total amount owed and also a cumulative total over 3 month intervals. Details confirming the date, amount, court, case number and reference number are given for the latest 10 judgments. Audit QualificationsAuditors can qualify their audit, if they have any concerns. There are five levels of qualification, with five being the severest and most alarming. Please note that levels four and five do impact upon the UK Data Ltd risk score. See the Five Levels Of Audit Qualification for more. Company Types and Registration NumbersThere are several alpha pre-fixes which are attached to company registration numbers. These are descriptive codes indicating the type of company registration. Some of these codes will indicate that UK Data may or may not have analysed the data field. See Company Types for an explanation for the various codes available. You can still access details of our old scoring model via a PDF download. |
|||||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||
