How do you calculate the credit limit?

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

The company Credit Limit is our recommendation of the total amount of credit that should be extended to a given company at any one time.


The recommended limit is directly influenced by the company's Risk Score (likelihood of insolvency) and different methods are used to calculate the limit depending on company type and the amount of information filed at Companies House.


Limited companies


Credit Limits are calculated using the Risk Weighting and key balance sheet figures for
companies that file accounts. For companies where accounts are not filed, the limit is calculated using a variety of other data fields.


The maximum credit limit for limited companies rated 30 and above is £100m


Non-limited companies


Credit Limits are calculated using the Risk Weighting and in the absence of accounting information, a variety other data fields.


The maximum credit limit for non-limited companies rated 30 and above is £100k


Zero Limit


A £0 limit will be appended to any company (limited or non-limited company) that has a credit risk rating below 30.


 




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