Drum roll, please….
We’re pleased to introduce the new and improved Handle credit report.
With all new metrics and personalised action plans, this report will help you get to grips with your business’s entire credit profile so that you can start saving money, accessing finance for growth and negotiating better payment terms.
The new Handle credit report features three cards:
- Can people verify your business
- Monitor your credit profile
- Am I finance ready?
So, let’s get into the new features.
Can people verify you and your business?
In this card Handle analyses how easy it is for suppliers and lenders to verify you and your business. Suppliers and lenders generally use four methods to verify you and your business's identity which gives them confidence that you are who you say you are and that your business is credit-worthy.
Handle replays this information back to you, showing you whether or not you have:
- Proof of director identity
- Directors address
- Proof of business identity
- Business address
If any of these aspects aren’t easily available to find online, applications for credit, dealing with utility companies or a new supplier may hit bumps in the road. Making sure all of this information is filled in accurately and up-to-date at Companies House will make it easy for you and your business to be verified.
In this card, we also replay how complete your Handle profile is. The more information that you’re able to provide to Handle the more accurate we can be when assessing your business.
Monitor your credit profile
In this card Handle provides the number of credit searches run against your business over a 1 month, 3 month, 6 month and 12 month period.
The more credit searches your business has, the more it suggests that you are seeking and potentially rely on credit. Making sure you know how often your business is being searched will ensure you are in the best position to approach lenders and suppliers. Reducing the risk of being turned down.
In your credit profile card, you can also see your current total debt along with how many credit arrangements that debt is across. You'll also be able to see your credit limit which is the recommended maximum amount of credit your business should have. The difference between your current limit and your current debt is the amount of credit that any new supplier or lender should extend to your business.
The last section is the SIC code (Standard Industry Classification) that you selected when you registered your business. It's important to ensure that this is correct as some institutions deem certain categories of business higher or lower risk when considering offering credit.
Am I finance ready?
The third and final card replays your business credit score which can be the largest factor used to determine whether your business is offered credit. It is an indication of your businesses stability and its likelihood of becoming insolvent within the next 12 months.
The next factor a lender or supplier may look at when considering extending your business credit will be your personal credit score. As a Director of the business, your personal financial health is intrinsically linked to your business. How you manage your personal finances is often used as an indicator of how you will manage your business finances. In both cases, the higher the score the better and the more confident creditors can be that you and your business will repay any credit agreements.
In this card you can also see your trading age, the number of unsatisfied CCJs against your business and your insolvencies.
Having any of these metrics populated will be a red flag to any potential lender that you may not be able to repay your credit agreements.
Personalised action plans
For each metric in your credit report, Handle generates a personalised action plan to help you take control of and manage that specific area of your credit profile.