As part of a Credit Reference Agency’s determination of a credit score, they receive information relating to what they term ‘detrimental’ information.
This includes things such as County Court Judgements (CCJs), mortgages and legal events such as administration, receivership, or insolvency, all of which would indicate an increase in financial risk to the business.
At CreditHQ, we highlight these events to help businesses understand the potential risks in trading with other businesses.
If you know that a company has encountered payment issues that have resulted in legal action, then you are able to make decisions on whether to offer credit or to request up front payment, or whether you should be chasing outstanding debt now before a company’s situation worsens.
Sign up here to see the credit events for businesses you’re trading with, and get to understand your customers.