About our CheckRate Verified Credit Score

CheckRate utilises a unique algorithm to give an accurate indicator of the trading status of any given company. Utilising independently verified and constantly updated information, from two Credit Agency Suppliers, this is how the Algorithm works:

Step One: Check the Company type
Is the company set up as a soul trader, Limited company or public limited company.

Step Two: Check the Status of the Company
What is the trading status of the company? Is it Live, Dissolved, Removed or in Administration / Receivership / Liquidation.

Step Three: Check Accounts Type, Standard Industry Classification
What is the SIC Code or Standard Industry Classification of the company?  Do they file Small, Medium, Large or Group accounts, small being up to 6.5million turnover, medium being 5.5million turnover to 25.9 million turnover and large being a turnover of in excess of 25.9million.  What are the Director details?  These cover age and length of service of director and other company status etc.

Step Four: Check the age of Financial Statements & Filing Date
Verifies when accounts were filed and if they are up to date.

Step Five: Check ROP & Calculate Gearing
Checks CCJ (Record of Payment) and Funding calculation (Gearing).

Step Six: Check Algorithm Calculation
Checks that the algorithm fits certain types and covers certain variances.

Step Seven: Check County Court Judgements & High Court Writ Calculation
Adds the County Court Jedgement (CCJ) & high court writ calculation.

The Credit decision that we give shows how financially stable the company is over the next 12 months, as a score out of 100 (where 100 is best and 0 is worst) and this score would  be a very good indication as to whether the company is going to still be around over the next 12 months.  

This would let you know how likely you are to potentially get a bad debt or default payment from a Credit Account Customer (for our Credit Checking Customers) or if you are likely to have problems with the company still being able to provide the goods or services that you are purchasing from (for Consumers of our CheckRate Clients).  The score predicts the likliness of the business failing oover the next 12 months.  

It is not a indicator as to the good or bad payment habbits of the Company or the customer service or experience levels that the business offers.  For that you would need to look at payment trend products or customer reviews and forums, however well established companies with higher scores have usually been around longer and therefore are likely to offer good levels of support and service due to the nature of their experience in providing those good or service (all though that isn't always the case).

If you are looking for Business Credit Assessment or want to see whether a company you are thinking of purchasing from is a sound financial risk, please look at our Business Credit Report Services Packages or our Business Search tool for consumers.