Understanding Payment Data

Created by Katie Deverill, Modified on Wed, 19 Oct 2022 at 06:13 PM by Katie Deverill

What is payment information?

Payment information is data we have collected from 3rd party companies who have chosen to share their customer’s payment behaviour with Company Check. These companies will inform us if a particular company pays its invoices on time or not – each invoice is referred to as a payment experience. By looking at payment information we can see how many payment experiences a company has and whether or not they were paid on time. In effect we are providing a bulk trade reference from different suppliers that can be viewed in an electronic format.

Should I look at the credit rating or the payment information?

Both! The credit rating predicts the likelihood of a company staying solvent whereas payment information relates to whether actual invoices have been paid on time or not. When making business/credit decisions it is important to be able to access as much relevant information about companies as possible.

Will payment information affect a company’s credit rating or limit?

Yes, payment data is factored into our scoring algorithm.

How should I use payment information?

Payment information can identify habitual late payers and allow you to make more accurate cash flow projections. The majority of companies that enter administration will show some sort substandard payment behaviour either late payments or no payment at all. Therefore Payment information can prove crucial when contemplating business transactions with a company.

How is this going to benefit my company?

As well as being able to see the likelihood of a company staying solvent, you will now be able to see how prompt a company pays its creditors. This will be an invaluable tool for cash flow projections and to identify habitual late payers; reducing the risk of bad debt.

Why isn’t there any information on a particular company/on my company?

This is an extremely new product and it will take time for us to build up the database. Rather than wait until we had a larger amount of payment experiences we thought it better to give you as much information as we can immediately. The amount of information within the database will depend on the number of partners we have willing to share their monthly ledgers. The more people that join the “Company Check community” and share their payment experiences the more information that will become available.

Can anyone provide you with Payment information?

Currently we are looking for providers that have 1,000 or more active UK customers. As the database grows we will be looking to integrate companies with smaller ledgers into the scheme.

I have seen a report from one of your competitors and they show different information to you?

A standard credit report contains information from within the public domain. The information we and our competitors show as part of payment information is provided by 3rd parties. We will all have different suppliers so the chances of us showing the exact same information are slim.

I have a potential customer that has numerous late payments on their file, should I carry out business with them?

The payment data is an additional information resource to enable our customers to make sound business decisions. You should take into consideration the fact that even if an invoice has been paid late, ultimately it has been paid. Company Check Credit Reports aim to provide you with as much information as possible but the decision is ultimately yours. If a company has a poor payment history you may want to carefully evaluate what credit terms to offer.

I have a customer that has never given me any payment problems however your report shows the company have had a lot of bad payment experiences, should I still offer the same credit terms?

This is why we are encouraging companies to share both their positive and negative payment experiences.

I have looked at few reports and there seem to be a lot more companies with late payments rather than paid on time?

Unfortunately the culture within the UK has resulted in an increase in the number of companies paying their invoices late. Current trading conditions are also playing a part in increasing the number of late payments.
In order to help your business we suggest that within your terms & conditions and invoices you include a sentence stating that you will exercise your right to claim interest and compensation under the late payment legislation if you are not paid in accordance to your pre-agreed credit terms. Even if you decide not to exercise this right it shows your organisation takes credit control very seriously. For more information please see http://www.berr.gov.uk/whatwedo/enterprise/enterprisesmes/info-business-owners/access-to-finance/late-payment/page37580.html

Does payment information cover Europe?

We are currently only processing experiences for UK (including Northern Ireland) based companies.

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