Guide
How to read a company credit report
How to interpret a UK company credit report, section by section, and turn it into a credit decision.
Start with the score and limit
Read the credit score and suggested credit limit first to frame the decision. The score is a single figure that estimates how likely the business is to fail or default over roughly the next twelve months — a higher score means lower risk — and the suggested limit turns that into a sensible maximum exposure. Treat them as a starting point, not a verdict, then test them against the detail below.
Check the public record next
Let the public record override the headline where needed. A recent county court judgment or an insolvency notice is more telling than a single number, and registered charges show who has first call on the assets.
Read the accounts trend
Look at the direction of travel in the filed accounts: rising turnover and net worth with steady margins is reassuring; a sharp fall in net worth or working capital is a warning, even on a decent score.
Look at the people, then the payments
Check the directors and people with significant control for connected risk, then use payment behaviour as the most current signal of how trade credit is likely to be handled.
Putting it together
Treat the figures as a well-evidenced guide that informs your own judgement. For a large or unusual exposure, it is worth confirming the latest position directly with the customer. See the annotated example to practise.
FAQs
What is a good company credit score?
A higher score means lower risk. As a rough guide a strong score supports normal trade terms, a mid-range score suggests a measured credit limit, and a low score calls for caution — but always weigh it against the public record and the latest accounts.
What counts as a red flag?
A recent county court judgment, an insolvency or winding-up notice, a sharp fall in net worth or working capital, or a rising Days Beyond Terms. Any of these can matter more than the headline score.
How often does a report change?
A report is a snapshot from the latest data held at the time of your search, and scores are recalculated as new filings, judgments or payment data arrive — so it is worth re-checking an account before a large or unusual order.
Related guides
What is a company credit report?
Read the guide →What’s in a company credit report
Read the guide →Credit rating, score and report explained
Read the guide →