The Structure Of Company Credit Reports

Comprehensive company credit reports provided by reputable credit check agencies include a lot of valuable data that can influence business decisions. When ordered from reliable agencies, financial reports are almost one hundred per cent accurate and regularly updated through the feedback from such sources as Companies House, County Courts, the Irish CRO and others. Analysing financial reports on both limited and non-limited enterprises is easy as long as the company is aware of their structure as well as important factors that can make or break business decisions.

The structure of limited and non-limited company reports

Thorough company credit reports for limited enterprises consist of fifteen sections and provide statutory, directory and risk information, ownership data, major shareholders, profit and loss accounts, cash flows, balance sheets, account notes, interims, ratios, etc. Non-limited company reports include contact details, risk information, County Court judgements and additional mortgage details for Southern Irish companies such as charge numbers, currencies, charge party names, properties and so on. Analysing this information on a regular basis may prevent the company from entering unreliable partnerships and losing capital.

The information available for analysis

While statutory and directory information contained in company credit reports gives a brief insight into the partner’s financial activity and company type, financial statements such as balance sheets and cash flows provide the client with the full picture of transactions that flow through the business in question. The balance sheet is regularly updated; it’s the record of all the capital invested in the company. The invested capital is used to buy assets which contribute to the cash flow of the enterprise. The statement of the cash flow usually comprises cash flow from financing, investing and operations for all available years, including net increase in cash. The income statement is the reflection of earned revenues which are usually matched against expenses. The growth rates included in the report provide growth measurements for one to four year periods. Such data as ratios and interims may also be helpful in measuring the enterprise’s financial stability. Next, it’s worth taking into account filing histories and company/industry comparison details that are vital for estimating the financial situation of the company in comparison with other businesses in the industry.

Credit limits

Detailed company credit reports are the source of credit limit data for the enterprises in question. Such values as cash flow, working capital and net worth should be taken into account to come up with the credit limit for a limited company, which is an indication of the value of contract the business can provide. For a non-limited company, one needs to consider the standard industrial classification of the company, the number of employees and other information from the report.

Detailed company credit reports are available on both limited companies that have filed accounts and non-limited enterprises which are not required to file accounts. Analysing the included data properly may help make business decisions on a solid amount of knowledge.