What's in the finance report?

The Handle finance report has been created to give you an executive level view of your business’s financial health.

The financial profile of your business is often the first place people will look to get an early reading on the health of your business. From your finances, people can make an assessment of whether your business is growing, how resilient it is and whether you are in control of your financial affairs.

Have a specific question about the Handle finance report? Use the links below to jump to a section.

Contents

  1. Your Handle finance score
  2. Profitability rating
  3. Cash flow rating
  4. Accounts filed with Companies House
  5. Recency rating
  6. Completeness rating
  7. Fixed assets
  8. Liabilities
  9. Security rating

1. Your Handle finance score

Your financial profile is a critical part of a business’s digital profile so Handle provides you with your Finance Score to show you what your financial records say about the financial health of your business. A high Finance Score represents a growing, profitable and resilient business and one which is more attractive to deal with.

How is it calculated?

Three critical factors determine your Finance Score; how profitable your business is, the resilience of your cash flow and the completeness of your financial accounts.

Your Handle Finance score is calculated by scoring your financial profile against these factors based on your business' profits, cash flow, assets, liabilities and the completeness of your filed accounts. Handle shows you each of these scores so you can see how each of them impacts the strength of your financial profile.

The data used to calculate this score is gathered from Companies House and your Equifax business credit file.

What a high score means

The Handle finance score is on a scale from 0 to 1000, The higher the score, the more profitable and resilient your business is and the better the overall financial health of your business.

By ensuring your financial profile is accurate, up to date and positive you will be in a better position to access the payment terms you want or be accepted for credit. Your business finances may also be reviewed by potential investors, employees and even customers to get an idea of the financial health of your business.


Back to top ^

2. Profitability rating

Your business' profitability is used by lenders and trade creditors to decide whether to give you credit (including when a business decides to give your business the opportunity to pay on invoice rather than upfront). Your business profitability may also be reviewed by potential investors, employees and even customers to get an idea of how your business is performing.

How is it calculated?

Your profitability rating is calculated based on your business turnover and the profits you generate. The data used to calculate the score is held at Companies House and on your Equifax business credit file.
What a high score means

The profitability score goes from 0 to 100 with a higher score meaning that your business is more profitable and therefore likely to be considered successful and performing well.


Back to top ^

3. Cash flow rating

Your cash flow rating represents how well your business generates cash and is used by lenders and trade creditors to decide whether to give your business credit.

Your business cash flow may also be reviewed by investors, employees and even customers to determine the business's ability to cover any liabilities that may arise from unforeseen circumstances and to get an idea of how your business is performing.

How is it calculated?

Your cash flow rating is calculated based on how quickly your business converts cash into profit and how the cash your business generates compares to your outstanding liabilities. The data used to calculate the score is combined from Companies House and on your Equifax business credit file.

What a high score means

The cash flow rating is on a scale from 0 to 100 with a higher score indicating that your business is able to generate profits as cash and is more likely to be able to repay debt owed, to manage through tough times and to be able to re-invest in the business for growth.


Back to top ^

4. Accounts filed with Companies House

This shows two relevant dates for your business's latest filed accounts held at Companies House:

  • The date on which you submitted your accounts; and
  • The end-date of the financial period to which they relate.

It is important to keep in mind that you have 9 months after the financial period ends to submit your accounts otherwise you will incur a fine.

Back to top ^

5. Recency Rating

Your recency rating represents the age of your most recent accounts and whether you filed them on time.

Older accounts may be less relevant to how your business is performing now and may be less relevant to someone wanting to establish the financial health of your business.


Back to top ^

6. Completeness rating

Your Completeness rating represents your track record of filing accounts with Companies House and the type of accounts you have filed.
The completeness of your accounts may be used by lenders and trade creditors to decide whether to give your business credit as it is a good indicator of whether your business keeps its accounts up to date and are managed professionally.

How is it calculated?

Your Completeness rating is calculated based on the filed account information recorded on Companies House in the past 5 years.
What a high score means

A high score indicates that all sets of accounts have been filed as required and that the accounts filed are full accounts. Lower scores will arise where filed accounts are missing or only abbreviated accounts have been filed.

Back to top ^

7. Fixed assets

This is the value of the assets held by your business as recorded at Companies House. Tangible fixed assets are physical assets such as buildings and machinery. Other fixed assets are the remaining types of assets such as intellectual property rights, investments and goodwill.

The assets held by your business may be used by lenders and trade creditors to decide whether to give your business credit and may be used to understand what security your business may be able to provide against a loan.


Back to top ^

8. Liabilities

This is the value of the liabilities your business has, as recorded at Companies House. Secured debt is similar to a mortgage as it is debt that is issued on the condition that if you default, a physical asset will be foregone to pay for the debt. Unsecured debt is not lent against any assets.

The liabilities your business has may be used by lenders and trade creditors to decide whether to give your business credit, as it gives an indication of whether you have existing debts that can impact your business' affordability to repay what it owes.

Back to top ^

9. Security rating

Your Security rating represents how your business' assets compare to its liabilities in the form of secured debts.

Lenders and trade creditors may review whether your business has enough assets to cover its liabilities as part of deciding whether to give your business credit, as this gives an indication of your business' affordability to repay what it owes.

How is it calculated?

Your Security rating is calculated based on the assets held by your business and the secured debts recorded against your business from the information filed at Companies House.

What a high score means

A high score indicates that your business has sufficient assets to cover the value of its secured debt liabilities and if your creditors called for repayment your assets would cover the amount owed.

Questions?

If you have any questions about any of the data in your Handle finance report? Please email [email protected] with some details and we’ll take a look for you.

Back to top ^