The United States and the United Kingdom are active trading partners. The US exported more than $58 billion worth of goods to the UK last year and imported more than $50 million worth and those numbers are forecast to grow in 2021.
While the US and UK have had a strong trade relationship for years, there is a different level of risk US companies are taking on when doing business with a company in the UK. Fortunately, you can get detailed business credits on UK companies to help you assess your financial risk.
Command Credit offers business credits reports for UK through our partner, Experian International.
Business Credit Report UK
Experian International business credit reports provide comprehensive commercial credit and financial information on UK companies.
When you buy a business credit report on a UK business, the report will assess a company’s financial health using information compiled from UK credit reporting agencies, banks, creditors, and tradelines. You will see information that may include:
- Business identity verification
- Corporate data
- Credit risk ratings
- Directors and shareholders
- Payment history, including missed payments
- Business credit scores
One significant difference in UK business credit reports is that they include recent financial statements for most companies. In the US, only publicly traded companies are required to make their financials public. In the UK, all companies of a certain size must disclose their financials.
The Benefits of UK Business Credit Reports
Whenever you are doing business with a company in another country, you want to evaluate their financial health to make sure you are comfortable with the level of risk you are taking. While it makes sense to evaluate all of your customers and suppliers regardless of where they are located, it is especially important when they are outside US borders.
Most transactions between US and UK companies go smoothly, but if a UK company defaults on its payments or goes delinquent, it can be difficult to recover your losses. You may need to engage multiple legal firms or collection agencies in both countries and overcome additional government hurdles. In some cases, you may not have the same legal standing you would have with a US company.
Even if you are successful in recovering your losses, they may come in the form of assets in case of bankruptcy. You may not be able to physically take possession or want to deal with the process of selling assets.
If you are one of many creditors, you will be standing in line behind financial institutions, secured creditors, and legal representatives. A UK company may also opt to pay local creditors or in-country businesses before they pay companies in another business.
Business Credit Reports UK on Your Customers
Before granting credit to a UK customer, you want to be confident in your decision. A good business credit score helps you determine whether to grant to a UK business and under what terms.
A business credit report provides an independent assessment of a company’s ability to pay based on its prior interactions with other creditors. You can get an early warning when a UK customer is having financial problems, defaulting on its bills to other companies, or only paying bills when they are past due.
These warning signs allow you to take the appropriate action to protect your business. If you find a UK company is not paying its bills on time, for example, you might refuse to offer them credit, limit the amount of credit you grant, ask for payment upfront, or attach penalties for failure to pay on time.
Business Credit Reports UK on Your Suppliers
The UK sends more goods to the US than any other country around the globe, but things have changed significantly in the past year. One study showed that nearly 15% of UK companies are at risk of permanently closing in 2021.
Before you commit to buying products or services from a UK supplier, be sure they have the financial resources to provide the services they have agreed to deliver. Likewise, before you do business with a customer in the UK, get the peace of mind that they will pay their bills on time.
Do you a business credit on a UK business? Contact the international business credit reporting experts to request a consultation.