A new service enabling small and medium-sized businesses to take greater control over their credit scores has just been launched.

The free service, launched by data analytics specialists Future Route in partnership with credit referencing agency Graydon UK, was developed to enable small firms to submit up-to-date evidence of their creditworthiness to credit reference agencies.

Martin Williams, managing director of Graydon UK, said credit referencing agencies were often faced with a dearth of information on small businesses, especially start-ups, which in the credit-checking world can be just as damaging as bad information.

According to Graydon, some 60% of small and medium-sized businesses in the UK are classed as an ‘above normal’ credit risk. However, the information credit agencies go on, much of which comes from historical account information submitted to Companies House, can be up to 22 months old.

CreditPal allows small and medium-sized businesses to submit their monthly management account information, which is then validated by the software and approved by the business before being incorporated into Graydon’s credit scoring database.

The credit reference agency has today unveiled CreditPal, a free service that uses Future Route business data analytics software to validate an SME’s monthly management accounts which are then fed into Graydon’s credit scoring data base.

Around sixty per cent of small businesses in the UK have ‘above normal credit risk’ said Graydon UK yet 70% of firms that have called for a review of their credit worthiness have seen their rating improved.

Martin Williams, Graydon UK managing director, said “an overwhelming majority” of SMEs had seen their credit rating dip in the recession.

“It’s absolutely crucial that owners and managers move away from the mentality that regards all detailed financial information about their businesses as private and confidential,” he said.

His comments head address concerns raised by some in the distribution channel when MicroScope first revealed Graydon was planning on launching CreditPal.

Statutory account information held at Companies House can be up to 22 months out of date which does not accurately indicate a businesses recent trading history.

“The finance and credit industry, as well as supply chain managers, now require timely and validated monthly management accounts information,” said Christopher Poll, chairman at software developer Future Route.

Philip King, director general at the Institute of Credit Management, said validating monthly management account information was seen as the panacea to pricing and managing risk.

“The availability of comprehensive information is vital to restoring confidence in assessing financial risk of incorporated and unincorporated businesses,” he said.

Commercial credit reference agency Graydon has launched what it claims will be the world’s first credit report service based on monthly company financial information.

The announcement follows repeated calls from across the credit, banking and insurance industries for credit reference agencies (CRAs) to base their recommendations on validated up to date financial information.

Graydon said the launch means that UK companies will no longer have to rely solely upon historic annual statutory accounts, filed at Companies House, as the main basis for assessing companies’ strength and viability.

This data, which has been central to decisions over granting credit, can be up to 22 months old, unaudited and highly abbreviated, leaving it unreliable as an accurate portrayal of a company’s trading status.

Graydon’s new credit report is driven by technology and data provided by CreditPal, a joint venture between Graydon UK and Future Route, an accounting software specialist. CreditPal allows businesses to upload monthly management account information, free of charge, online at www.creditpal-online.com.

This data is then standardised and validated by Credit Pal and displayed to the user for approval, before relevant financial extracts are sent to Graydon UK’s credit database for use as part of the new credit report service. Insurers recommend that businesses using credit insurance should encourage their small and medium-sized enterprise (SME) clients to use the CreditPal website to improve the amount of cover insurers will provide on buyer risks.

Graydon UK, the commercial credit reference agency, today announces the launch of the world’s first enhanced credit information report service based on monthly company financial information.

The launch of the new service follows repeated calls from across the credit industry, banking and insurance, for credit reference agencies to base their recommendations on validated up-to-date financial information. This demand was reflected by the findings of a recent survey undertaken by Graydon UK. The survey reported that 91 per cent of Credit Managers regard up-to-date validated management accounts as “valuable” or “very valuable”, when making credit decisions.

This new development also means that UK companies will no longer be obliged to rely solely upon historic annual statutory accounts, filed at Companies House, as the main basis for assessing companies’ strength and viability. This information, which has until now been central to the decision making processes of providers of finance and credit, can be up to 22 months old and is often unaudited and highly abbreviated. This means that it does not necessarily accurately portray a company’s current trading status.

While statutory account information will continue to play an important role in the credit scoring process, the availability for use of up-to-date validated monthly management account information will now significantly enhance the quality of credit decision making. Credit managers and commercial credit grantors will benefit from the service, alongside banks, credit insurers, factors, suppliers, invoice discounters and other participating ratings agencies.

This new credit report is driven by technology and data provided by CreditPal™, a joint venture between Graydon UK and Future Route, an accounting software specialist. CreditPal allows SMEs to upload monthly management account information (free of charge) online.

This information is then standardised and validated by CreditPal and displayed to the user for approval, before relevant financial extracts are sent to Graydon UK’s credit database for use as part of the new credit report service. Insurers recommend that businesses using credit insurance should encourage their SME clients to use the CreditPal website to improve the amount of cover insurers will provide on SME buyer risks. This means they will be able to transact more business with less risk.

Graydon UK announces launch of new enhanced Credit Information Report Service based on monthly management figures.

Graydon UK, the commercial credit reference agency, today announces the launch of the worlds first enhanced credit information report service based on monthly company financial information.

The launch of the new service follows repeated calls from across the credit industry, banking and insurance, for credit reference agencies to base their recommendations on validated up-to-date financial information. This demand was reflected by the findings of a recent survey undertaken by Graydon UK. The survey reported that 91 per cent of Credit Managers regard up-to-date validated management accounts as valuable or very valuable, when making credit decisions.

This new development also means that UK companies will no longer be obliged to rely solely upon historic annual statutory accounts, filed at Companies House, as the main basis for assessing companies strength and viability. This information, which has until now been central to the decision making processes of providers of finance and credit, can be up to 22 months old and is often unaudited and highly abbreviated. This means that it does not necessarily accurately portray a companys current trading status.

While statutory account information will continue to play an important role in the credit scoring process, the availability for use of up-to-date validated monthly management account information will now significantly enhance the quality of credit decision making. Credit managers and commercial credit grantors will benefit from the service, alongside banks, credit insurers, factors, suppliers, invoice discounters and other participating ratings agencies.

This unique and revolutionary new credit report is driven by technology and data provided by CreditPal, a joint venture between Graydon UK and Future Route, an accounting software specialist. CreditPal allows SMEs to upload monthly management account information (free of charge) online at www.creditpal-online.com

This information is then standardised and validated by CreditPal and displayed to the user for approval, before relevant financial extracts are sent to Graydon UKs credit database for use as part of the new credit report service. Insurers recommend that businesses using credit insurance should encourage their SME clients to use the CreditPal website to improve the amount of cover insurers will provide on SME buyer risks. This means they will be able to transact more business with less risk.