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
  3. Cash flow rating
  4. Accounts filed with Companies House

1. Your Handle finance score

Handle finance report score screenshot 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' profitability, cash flow and security. 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.


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2. Profitability

Handle finance report profitability card 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.


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3. Cash flow

Handle finance report cash flow card Your cash flow 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.

Your cash flow 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.

The higher your ratio, the more likely 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 reinvest in the business for growth.


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4. Accounts filed with Companies House

Handle finance report account recency This shows you how up to date your filed accounts are, held at Companies House.

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.

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9. Security rating

Handle finance report security card 1 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.

A high ratio 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.

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