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Has COVID-19 Impacted Your Company’s Credit Rating?

Agencies look at many factors ...

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Posted by Roger Eddowes on 05/07/2021 @ 8:00AM

We all know how difficult COVID-19 has made running a business over the last year and one of the side effects has been the impact on credit ratings ...

We have a contact within a firm specialising in improving company credit ratings where it can legitimately be done!

We have a contact within a firm specialising in improving company credit ratings where it can legitimately be done!

copyright: andreypopov / 123rf


There are several credit rating agencies out there and their first port of call is usually the filings at Companies House. Anything within filed financial statements such as a reference to going concerns in an audit report, or simply that the balance sheet is showing negative reserves, will be noticed.

This leads to a downgrade in credit ratings. However, the agencies will also look at other factors (including trends) where the information is freely available such as:

  • The time it takes for customers to pay

  • How long it takes the business to pay its suppliers

  • Cash flow and level of borrowing

  • Defaults on loan payments

  • Not paying HMRC on time

  • The data and financial stability of other companies that the directors are associated with

  • The credit scores of directors themselves

One other important factor to consider is the late filing of documents at Companies House. Not only will they lead to penalties, but the credit rating agencies only ask themselves why and mark you down.

We have recently come across a few businesses that have been unfairly marked down by the agencies. We can't always perform miracles, but we do have a great contact within a firm specialising in improving company credit ratings where it can legitimately be done.

Until next time ...

ROGER EDDOWES
Business Godparent

 
 



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If anything I've written in this blog post resonates with you and you're worried about your company's credit rating, click here to get in touch or give me a call on 01908 774320 and let's see how I can help you.

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About Roger Eddowes ...

 

Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.

Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.