What do credit check companies say about your business?

If someone were to take a look at your company accounts, a service Company Search MadeSimple is able to provide very quickly and easily, what would they think? It’s a difficult thing to get an unbiased or objective assessment of your company, but undertaking a company search provides a balanced and reasoned view – an invaluable asset.

But what do your company accounts say to others, perhaps those competing with you or maybe a new business partner?

How do YOU judge other company accounts?

One of the greatest ways to determine what your company accounts say to others is to determine what the company accounts of others say to you. Most likely the following will be important:

1. Credit & Rating – The credit score and limit of a company is always very important. An external creditor or potential business partner will always find the credit rating of a company very important when determining whether or not to do business with them.
2. Profit & Loss – The company search packages offered by Company Search MadeSimple can include details of profit and loss, which is a key way to judge company accounts and get a feeling for how successful a business is.
3. Shareholders – If you can get an idea of the directors and shareholders, you can get an idea of the ownership – this provides an insight into who the key figures in a company are, as such this is an important factor when considering company accounts.

These criteria are popular ways to judge a company, as they give you the important financial information and details of the business administration. This is needed to judge whether or not a company is reliable to do business with.

How can I improve how people view my company accounts?

The view people take of your company accounts is very changeable, which can be good because you can then improve the image of your company accounts and improve your business reputation. There are some simple ways to do this including:

• Paying Debts & Obligations – Meeting any debts including tax or mortgages and bolstering current assets such as cash and inventory can help improve your credit rating.
• Correct Mistakes – If you have an incorrect business address, or there are any other mistakes in your documentation, you could find your credit rating affected. Make sure all of your official information is correct and up to date – this includes filing accounts with Companies House.
• Increase Reliability – If you can make sure that you pay bills on time, and also have a successful relationship with suppliers, then you can have an increased reliability added to your reputation.

When somebody undertakes a company search, they may well find the information off-putting. However, focussing on improving the above things can make a big difference – especially longer term.

Company accounts & future business

Having company accounts that aren’t as good as they could be can be damaging, but it might not necessarily mean someone does not want to do business with you.

If a potential supplier is in contact, you could voluntarily provide some of this information – this can be beneficial as you are able to open up a dialogue and have an honest and frank exchange.

Did you find this useful? Please comment and check out the rest of our work on the Company Search MadeSimple blog – including more posts on ‘Company Accounts’.

By Alex Novakovic at MadeSimple – Find Alex on Google+