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FAQ's & Facts about Credit Rating & Limit

What is the Creditserve Credit Rating?

The Creditserve Credit Rating predicts the likelihood of a company becoming insolvent within the next 12 months.

Ltd / Limited & Plc Company Credit Rating definition where Accounts are filed


Very Good Credit Worthiness


Good Credit Worthiness


Credit Worthy


Credit Against Collateral


Caution - Credit at your discretion

No Rating

Financial Statements are too old


Company is liquidated or is wound-up


Company is dissolved


Petition has been filed

Ltd / Limited & Plc Company Credit Rating definition where no Accounts are filed


Low Risk


Moderate Risk


Caution - High risk


Company is liquidated or wound-up


Company is dissolved


Petition has been filed


How is the Creditserve Credit Rating calculated?

The Creditserve Credit Rating calculation was created by analysing company data over a 36 month period, especially on companies that had ceased trading for whatever reason. Using high level mathematical analysis, we identified the key data variables that are essential in predicting the probability of a company becoming insolvent within the next 12 month period. These variables were then run against our entire database of companies and through statistical analysis, an appropriate risk weighting was assigned to each variable. Through the calculation of these key variables, combined with current variables we generate the credit rating score.

Key Data Variables

  • Age - A newer company wouldn't be penalised for it's age, but an older company will have more history to assist with a calculation.
  • Size - Small and Medium sized companies are scored using a separate calculation to large sized companies.
  • Financial performance - Net Worth, Cash etc. is compared to previous years and with similar sized companies.
  • Age of the company accounts - Analysis has shown that small sized companies who file within the final 15 days of their due date are almost three times more risky than a company who files in good time. For large companies No Rating is provided if the accounts are filed late.
  • Ratio Analysis - Return on assets employed etc.
  • Comments from Independent Auditors - Any adverse comments would affect the credit rating.
  • Director’s individual directorship history and performance - If a director is associated with companies which are insolvent or have adverse information this may affect the credit rating. The number of directors and changes within the management of the company is also considered?
  • The Company’s Group Structure Influence - If the company is part of a group, the companies within the group are also analysed to look for adverse information such as insolvency. Adverse data from associated group companies would affect the credit rating.
  • Demographics – The Industry Sector, Age of Business & Business Location may affect the credit rating if the area or sector has seen an increase in insolvencies.
  • Mortgage Data - The amount and number of mortgages against the company will affect the rating.

Current Data Variables

  • Industry insolvency trends - Analysis across the country and carried out and adjusted quarterly
  • Number of CCJ’s - The more County Court Judgements, the bigger the affect on the credit rating.
  • Value of CCJ’s - The bigger the value of the County Court Judgements, the bigger the affect on the credit rating.
  • Frequency of CCJ’s (how often and how recent?) - If a company receives a number of County Court Judgements within a short space of time, this would be considered an increased risk.
  • Time critical filings - Any documents which are over due for filing at the registry would suggest an increase in risk.

To ensure that latest credit ratings take into consideration the problems that companies are facing in the current economic climate, we have taken the results through an additional stage of analysis to reflect the latest trends in insolvencies. The ratings have then been further processed to reflect the insolvency trend by industry SIC code ensuring that companies in the worst affected industries have their ratings reduced appropriately.

As a positive by-product of these changes we are able to reassess the insolvency statistics quarterly and alter the ratings both as a whole and by industry so that we continue to have the most up to date and relevant rating possible.

Our rating algorithms are split in two for established companies using the Companies House definition of a small company for one and all medium and large companies in another. We also have a separate algorithm for Non Limited companies and for New companies (less than 22 months old and yet to file financial information).


How often is the Credit Rating on the Credit Reports calculated?

The Risk Credit rating is calculated daily and is entirely automated, there is no manual calculation required to manipulate or adjust credit scores/ratings. Daily feeds are taken from our databases to update scores on a real time basis. If a company submits its latest accounts to Companies House, then as soon as these are available to the public (usually 10 working days later) the documents will be analysed within 48 hours and updated on the database. As soon as this is completed the company’s credit risk rating will be recorded / adjusted based on the latest filed accounts. The system also continually incorporates the following time critical information, which updates the credit rating on a real time basis:

  • Companies house Gazette
  • London, Edinburgh & Belfast Gazette
  • CCJ, Scottish Sheriff & High Court


What is the Creditserve Credit Limit?

The company credit limit is a recommendation of the total or maximum amount of credit that should be offered to the company in question at any one time.

Creditserve calculate Credit Limits by looking at a company’s financial position in great detail. We look at critical credit information fields in conjunction with the credit rating of the company so that we can accurately predict the correct amount. The financial fields taken into our calculations are:

  • Net Worth
  • Working Capital
  • Net Cash Flow Operations
  • Debtors & Cash
  • Turnover (where available on medium and large Co’s)

If a company has a positive rating and the above financial fields are all of high values then you can expect this company to have a positive credit limit, if they have a low or negative rating and the above values are low) then the credit limit decision is likely to reflect this. The above financial items are standard for credit Limit assessments.

County Court Judgments (CCJ’s)

Our Company & Business County Court Judgments (CCJ’s) comes from the Registry Trust (England & Wales and The Sheriff’s Office in Scotland).

County Court judgments or Scottish Decrees are brought against companies and businesses for non-payment.

The matching is done on Company or Business name and address and we show exact and possible matches.

A judgment must be paid within a month of being issued. If the judgment is paid off within the month it is removed and is removed from the record and not shown in the report.

If the judgment is paid after one month then the details remain on the system but will show the judgment as satisfied.

Our Reports shows the total number of CCJ's, the total amount owed and  a cumulative total value amount over 3 month intervals.

Details confirming the date, amount, court, case number and reference number are given for the latest 10 judgments.


To check out the credit rating or limit on a company please use the company search facility in the online shop.  To see some sample reports with different credit ratings and limits please see our samples page.

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Creditserve Business Information Ltd is registered by the Financial Conduct Authority under registration number 626460.
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