A new service has been launched by Experian, to make it easier for Small and Medium Enterprises in the UK to make calculated decisions for their business. The Experian Business Check lets a company obtain detailed information about a potential client or supplier’s payment record and financial stability.
The new service will assist businesses in the decision making process, reducing the possibility of payments not being made or late payment and identity fraud in the commercial sector. The information will be gathered by Experian from Companies House, Thomson and Yell. Any disqualified directors will easily be recognised with the new service, being able to check the credentials of any company director. A business is also able to register for either email or text alerts, so changes to a business which is being monitored will be sent to interested parties.
The managing director of Business Information Services at Experian, Max Firth said:
“More than 20,000 firms go out of business every year in the UK, leaving a trail of unpaid bills and out-of-pocket creditors. Furthermore, many firms are facing late payment issues, where the average time taken to settle bills is now almost 26 days beyond agreed terms. As a result, so many smaller businesses encounter cash-flow problems that can even lead to their own failure.”
The service, used in conjunction with accounting services, can minimise risk and enable a company to make more informed decisions. Data from more than 22 million transactions made between businesses is used to create the new service, helping to increase cash-flow.