If company is listed on Company Check does that mean it's genuine?
Not necessarily. We provide the facts based on the information filed at Companies House. There are cases where a fraudster could use the credentials of a legitimate company, in which case should should ask yourself "am I actually speaking with the legitimate company?".If in doubt, write to the company's registered office address - you can find this free on companycheck.co.uk. Ask that they contact you about the sale. You can also download the latest Annual Return and cross reference the Director details with the seller you speaking to ensure they're an employee of the genuine company.
Bear in mind however, the fraudster may have done his research and found this information out in the same way. Please note that there have been cases where fraudsters have gone to the trouble of illegally filing documents at Companies House in order to change the company´s registered office address and even director names and then using the false details to trade illegally without the company's knowledge.
It is ultimately down to your as the customer to do the necessary due diligence to ensure you are dealing with a genuine company. We offer credit scores based on the financial information filed.
The Basics
Look at the age of the company. Has the business been established for a number of years, or has it only recently been incorporated? A newer company wouldn't be penalised for its age, but an older company will have a more thorough history to assist with a risk calculation.
Financial Accounts
Is the company up to date on accounts filings? Doe the company file accounts on time? Companies who file in the final 2 weeks of their due date are three times more likely to become insolvent within the next 12 month period, than a business that files in good time.
All private limited and public companies must file Accounts at Companies House annually or they will be penalised and their credit score will be affected.
New companies must file first accounts within 21 months of the date of incorporation for private companies (18 months for public companies) or 3 months from the accounting reference date, whichever is longer.
Credit Risk
Don't take unnecessary risks. You should understand the credit risk of every company you deal with. Our Risk Score rates from 0 to 100 and predicts the probability of a business becoming insolvent within the next 12 months. Scores are created though discrimination analysis across historical company insolvencies to create appropriate risk weightings. These factors are then applied across our database and statistical analysis is performed, and risk scores appended to individual companies.
Mortgages and Charges
Check whether the company has any mortgages or charges registered. Are they satisfied or outstanding? What are the values of those debts?
The Management - Directors
Look at the company directors - the individuals who run the company. Are they associated with any other companies? How are those companies performing?
The Owners - Shareholders
How are the shares distributed? Is the company part of a group with a larger holding company? The holding company will file the accounts for the group so it may be worth reviewing this company also.
Companies House filing history
Look at the latest documents filed at Companies House. Have there been a higher number of filings than usual regarding directors or changes in address? Has the company changed name? Are there any mentions of administration events or insolvency?
Customer Feedback
Have customers or suppliers left comments about the business? Review other people's experiences and search online to find feedback forums for products and services.
