Friday, 28 November 2008

Why do some companies have no credit score?

Not all businesses will be scored or have limits. This depends on the information available.

Where a company has no risk score or credit limit, it can be due to one or more of following reasons:

  • There is insufficient information on a business
  • The business has more than 4 outstanding County Court Judgements (see below for a definition of this) in the last 6 months and less than 25 employees
  • The value of CCJs is greater than £2,000 in the last 24 months
  • There have been more than 3 CCJs in the last 12 months
  • There are more than 10 CCJs in total

Where a company has no risk score or credit limit, it is likely to be due to the following reasons:

  • There is not enough information to estimate financial strength
  • The business is engaged in certain financial activities, making an estimate of financial strength inappropriate

In these cases particular care should be taken in making credit decisions.

For information County Court Judgement notifications are based on information received from the Registry Trust about County Court Judgements or Scottish Decrees brought against companies for non-payment.

The matching is done on name only and shows exact, probable and possible matches. A judgement must be paid within a month of being issued. If the judgement is paid off within the month it is removed and will not be shown in the report. If the judgement is paid after one month then the details remain on the system but will show the judgement as satisfied.

UK Data Ltd shows the total number of CCJs, 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 judgements.