A third of SMEs unaware of business partner debts - Business Credit News UK
Member's Login


Save password
Forgot your password?
 Why Register?
 Register Now

Latest News Highlights
ICM surveying opinions for the latest ICM UK Credit Managers' Index
Meeting of Creditors Liquidation Notices - Section 98 of the Insolvency Act 1986 - 17 April 2014
New Links
Schema Limited - Bangladesh
Credit reporting agency in Bangladesh

Apr 18 2014
Add this page to your favourites Need help navigating this site? View a map of this sites contents
Home > News > Article
A third of SMEs unaware of business partner debts

Jun 6 2012
Small businesses are being urged to check the financial status of business partners and suppliers before doing business with them.

The warning from 192.com comes following its survey which found that one in three SMEs were unaware of a business partner's debt, while a third said they had been lied to about the state of a company's finances.

Over one in five SMEs said they had found themselves caught in financially unsound business relationships after failing to study company credit reports.

It also revealed that 77 per cent of SMEs had not researched a partner's financial history by obtaining a business credit report. Such reports detail a businesses' financial health by outlining county court judgements - a legal notice of a company's failure to pay debt - which stay on the register for six years.

Dominic Blackburn of 192.com said: "We advise business to use a company credit report to find out whether a potential business partner can service its debts, pay its suppliers on time, and maintain stability at board level."

Outstanding charges against a company were cited as the most troubling aspect of a company credit report, followed by previous county court judgements and poor working capital.

Just under half of respondents also said that a company who had changed its name several times would also be a cause for concern while the unreliability of business suppliers had also been a problem for SMEs.

Key findings from the research found that:

* 32 per cent had not been told about the state of a company's finances.
* 22 had experienced a financially unstable business partnership.
* 70 per cent of businesses would be troubled by outstanding charges against a company.
* 65 per cent would be concerned by county court judgments.
* More than half would be put off by a company's poor working capital.

Go to http://www.creditman.biz/uk/members/products.asp?categoryid=440&allcats= to start your checks.

Source - Gibson Hewitt

Related link: www.192.com/businesses/

Print this article     
Post News
News Archive
News Search
Letter To Editor
News Headlines
ICM surveying opinions for the latest ICM UK Credit Managers' Index
Meeting of Creditors Liquidation Notices - Section 98 of the Insolvency Act 1986 - 17 April 2014
Winding Up Petitions (Companies) Notices - 17 April 2014
Appointment of Administrators Notices - 17 April 2014
Administrators appointed to sit-up Limited the digital broadcaster behind Price Drop and Bid TV
Buyers sought for Dorchester and Bournemouth care homes
Paym back on pay day
Winding Up Petitions (Companies) Notices - 16 April 2014
APCOA PARKING Group receives English High Court sanction of Schemes of Arrangement
Recovery firmly established as financial distress levels reduce year on year, but Q1 bites back
Follow Us On
Follow us on Twitter Check out our blog posts Go to our LinkedIn profile Subscribe to our RSS feed

Shopping Cart
Items: 0 Total: 0.00
View items in your shopping cart Checkout

Upcoming Events
ICM Student evening
Understanding Credit Information
Optimising the Management of your Credit Insurance Policy
ICM WEBINAR – Telephone Collections
International Restructuring Conference
Search for more events…

Top Products
Experian Silver Non-limited Business Report
Tile Advert on Front Login Page and one Content Page

Special Offers
In Focus UK Credit Reports

Homepage | Feedback | About Us | FAQs | Sitemap | Terms & Conditions | Privacy Statement | Help Page | Advertising