Credit check hike on companies

Last year, there were estimated to be over 25 million credit checks per year performed on UK companies but short term lender Bridging Finance predicts a 100% increase. Gloomy economic predictions and the threat of recession means firms are protecting themselves from unforeseen credit traps. Bridging Finance has teamed up with credit reference information company Creditsafe to launch an online credit check service for just £15. Chris Baguley, managing director of Bridging Finance Limited, said: “We expect to see a huge rise in the number of companies checking the financial status of the businesses they deal with. 2008 will be a year where many businesses pay closer attention to their own finances and those of the people they deal with. “By launching this facility we hope to arm business owners with the knowledge they need to make accurate decisions and avoid being on the wrong end of businesses that hit the rocks.” The data for the credit check is supplied by Creditsafe, a company that supplies credit information services. As well as information concerning company accounts, shareholdings and due diligence, the system also provides a credit score that enables people to judge the financial health of the company and the maximum amount of credit they should be offered.