checkSURE NEW Payment Performance Data
Company credit scores and credit limits have been around for a while in business credit reports. The mathematical algorithms that underpin them have become more sophisticated over recent years. Since 2002 we have seen several improvements in the accuracy of our checkSCORE product. Whilst credit scoring agencies tend to keep their scoring methodologies secret, in our experience, the checkSCORE for UK companies appears to be closely related to the quality and timeliness of the data filed at Companies House.
However, what many checkSURE Users want to know is will they get paid? And how long will it take? This information is not filed at Companies House by the vast majority of companies.
In keeping with our philosophy of delivering as much data as we can source for a reasonable price, checkSURE Full Company Credit Reports and Keep it Live Reports now contain a section called ‘Payment Performance’. If you already have Keep it Live Reports in your checkSURE Portfolio simply refresh the report and if payment data on the business you are tracking is available, you will see this extra data for free.
Payment Data – Days Beyond Terms Section
The new Payment Data – Days Beyond Terms (DBT) section in checkSURE reports provides an additional tool that will help our Users decide how much credit to grant a potential client or business partner. Payment data gives information, both historical and current, on the payment habits of individual companies. This is sourced by collecting and collating around 4,500 ledgers every month from different volunteering companies in various industrial sectors. Currently, this totals to 17 to 18 million experiences (or transactions) per month with a total value of around £6 billion. This payment data information is available for both limited and non-limited businesses covering approximately 50% of the entries within the checkSURE database.
As a smart checkSURE User you will have noticed that £6 billion worth of transactions is a tiny fraction of the turnover of the UK economy. The companies that join the scheme to collate payment data tend to be some of the UK’s larger enterprises or factoring companies. Their size has the advantage of trapping details of the many transactions in which they have an interest. However, if your small business (like ours!) tends to trade predominantly with other smaller enterprises it is unlikely that you will find any payment data available on your business. Also newly formed companies have little data associated with them since payment data is best judged when it has time to accumulate.
Payment Performance Analysis
Given the caveats above, here is how checkSURE has chosen to display the data that we have access to. The payment data information will be presented as a series of tables in checkSURE’s Full Company Reports (not in Snapshot Credit Reports) that provides a summary of the company’s payment performance over the last twelve months:
- DBT Trend – Days Beyond Terms trend table shows payment information that is detailed over the last twelve months. It shows on a monthly basis the DBT and the number of experiences (or transactions) that are collected each month for the particular company.
- DBT Industry Comparisons – this shows the DBT for the company compared to the average DBT for other companies that are within the same industry sector.
- Account Size – shows the number of accounts that are beyond terms according to the value of the accounts.
- Unpaid Accounts Table – details any unpaid accounts for the last six months.
Naturally, as payment data is accumulative, the best way to track payment data for a target company by purchasing a Keep it Live Report.
Don’t forget… checkSURE’s User Generated Data
Please be aware that this is still early days in devising efficient mechanisms to collate and analyse payment data. That’s why in addition to the Payment performance section in our Full Company and Keep it Live Reports, the checkSURE team have introduced checkSURE Users’ Generated Data. This allows our User community to contribute their own scores for businesses or companies with whom they are trading. The checkSURE User Rating is made available to any subsequent checkSURE User who buys a report on the target business that has been rated by checkSURE Users and consequently lets others know how quickly these businesses have been paid by people who use our service. The checkSURE User Rating is viewed via your checkSURE Portfolio.
Of course this depends on people like you contributing. So if you feel you can act responsibly when filling out our form and give an accurate payment rating and comment based on true dealings you have had with a business, we value your contribution. Simply buy a report on the business that you want to comment on and follow the links.