Experian updates its credit scoring method in line with the current economic climate

Credit scores within CREDITFOCUS reflect the odds that a business will cease trading within the next year, allowing you to evaluate the risk that you are taking in extending them credit.

A major reason that we chose Experian as the data provider for CREDITFOCUS is that - as the UK's leading credit reference agency - they offer market leading expertise in these scoring techniques.

The rapidly changing economic environment has provided Experian with an opportunity to modify the way credit scores are determined, meaning even more accurate scoring of your customers as the economic climate changes.

Since the 18 July, updates have been reflected in your CREDITFOCUS account, to ensure that you get continued up-to-date information on your customers. Scores for businesses that are recent start-ups are most likely to have been impacted by the changes, but more established businesses may have also been impacted.

To find out more about what's different, and what it means for you, click here.

Expert View

Why setting Credit Terms with your customers makes good business sense

Most businesses give some level of credit to their customers, but many still don't set formal Credit Terms (also known as Terms of Conditions or Terms of Trade) with them.

Andrew Corke from Lester Aldridge* explains the importance of setting formal Credit Terms to protect your business from cash flow shortages due to unpaid invoices, help you build relationships with your customers, promote your business, and support your cash flow.

Credit Terms protect your business when you sell your goods or provide a service

• They are legally binding, enabling you to take a customer to court if they don't pay as per your agreed terms
• They are customised to your business and ensure it's your credit terms that apply, rather than your customers' - it's not uncommon to see customers trying to do business on their own credit terms, which will obviously be in their favour
• They restrict your customers' ability to defend your claim of breach of contract (if you take them to court)

Credit Terms help you build relationships with your customers and promote your business

• They promote your business as a professional and well run customer friendly business
• There is less chance of a dispute arising if agreements are clearly set out in writing

Credit Terms support your cash flow

• You can recover the goods you supplied to customers if they don't pay on time by using a Retention of Title Clause (the goods belong to you until payment has been received)
• You can reclaim bank charges on bounced cheques
• They enable you to reclaim interest on overdue debts

* Lester Aldridge (LA) is a leading UK law firm based in Bournemouth, Southampton and London. They provide the debt recovery solicitors’ letters service for CREDITFOCUS

CREDITFOCUS helps more customers significantly
reduce the risks of unpaid invoices and bad debt

A recent article in The Sunday Times, describes how CREDITFOCUS has helped Stuart Mills of Colprint, a Birmingham, printing company to save £4,500 in bad debts.

He started credit checking his business customers a year ago using CREDITFOCUS and since then his bad debts have fallen to £500 a year.

He also sends out a letter stating his terms and conditions to all his customers, something that he would not have considered doing in the past.

The article goes on to describe how Ken McKenzie, the owner of McKenzie Electrical Services in Northampton, has also started credit-checking all of his customers and using the information in CREDITFOCUS to decide what level of credit to offer them.

He said: "I am a convert to the importance of credit checking. It is a no-brainer." 

Click here to read The Sunday Times article in full.

CREDITFOCUS
Recommend a Friend
Scheme coming soon...

An amazing 83% of our customers told us they would recommend CREDITFOCUS to their friends.
This is why from August, you'll be able to recommend CREDITFOCUS to your friends, and you could both earn £25 worth of M&S gift vouchers*.

All you'll need to do is login to your CREDITFOCUS account, click on the 'Recommend a friend' link or banner, type in your friend's e-mail address, and that's it.

You can recommend as many friends as you want, and you'll even be able to track the recommendation status to see whether your friends have signed up.

*Subject to Terms and Conditions.

Watch this space for
the new and improved creditfocus.co.uk website...

We're delighted to have responded to our customer's feedback and look forward to sharing further product updates with you in the next issue of the CREDITFOCUS e-news.

CREDITFOCUS wins the 2009 Regional Business Awards

In last month's issue of  e-news we reported that CREDITFOCUS had made it through to the regional finals of the 2009 Orange National Business Awards in the category for 'Best Use of Technology'. Well guess what, we won!!

Click here to read more.

This means we are now in the running for the National Business Award and have added a fourth award to the CREDITFOCUS trophy cabinet in just nine months!