Small business founders registering their business with The Formations Company, will now be offered access to CreditHQ when they form their new companies, allowing them to check the financial health of the suppliers and customers they invoice, and know whether those trading partners are likely to pay on time.
“Late invoice payment is one of the biggest reasons for the cash-flow issues that many small businesses are facing in 2015,” said Martin Campbell, Managing Director, Ormsby Street. “But most small businesses don’t think to check on the financial health of a customer or supplier. Making CreditHQ available to customers of The Formations Company not only provides an easy way to check this but will also recommend whether a company is likely to pay on time or not.”
The Formations Company is the most cost-effective way for a new business to form and has helped more than 100,000 UK small businesses form since its launch in 2009. It offers a range of extra services from a free consultation with an accountant or web developer to £25 free credit for business cards and stationary. The addition of CreditHQ to this suite of services looks to protect small businesses from late invoice payment and the cash-flow issues that can bring.
CreditHQ uses data from seven million company records to check credit status and general financial health, and uses a traffic light system to advise small businesses whether a company is likely to pay them on time. It also provides regular updates on credit ratings, so a small business will be kept abreast of any changes in a customer’s ability to pay.
“Forming a business can be bewildering, so we want to provide our customers with the very best services and tools to help them as they start their business journey,” said Piers Chead, CEO, The Formations Company. “CreditHQ absolutely falls into that category. Late payment of invoices is a major issue for SMEs, so a free tool that enables them to check the financial health of potential clients before beginning work with them will be invaluable.”
For more information, or if you’re ready to set up your limited company: https://www.theformationscompany.com/