The proportion of UK companies carrying a credit rating which may negatively affect their ability to obtain finance and favourable credit terms from suppliers has climbed further during the last three years, research finds.

The proportion of UK companies carrying a credit rating which may negatively affect their ability to obtain finance and favourable credit terms from suppliers has climbed further during the last three years, research finds.

According to a study of businesses in the UK from credit risk management agency Graydon UK, 69 per cent were assessed by the agency as being ‘high risk’ or ‘above normal risk’, in terms of defaulting on trade payments or getting into financial difficulties.

This compares with a figure of 60 per cent when a similar survey was conducted in June 2009.  

In contrast, however, just 5 per cent of the companies reviewed were awarded ‘low risk’ ratings by Graydon UK, compared with a figure of 13 per cent three years ago, confirming a slight upsurge in the proportion adjudged to be ‘normal’ in their risk level.  

Graydon UK external spokesperson Gordon Skaljak says, ‘These figures underscore the importance to companies of making detailed financial performance information available at a time when credit remains scarce as the recession deepens once again and many businesses are being forced to look beyond banks to access alternative sources of finance.  

‘This is especially important for unincorporated businesses, which still suffer from the absence of a central UK registry to lodge details about their operations.’  

He continues, ‘All business owners need to recognise that sharing current financial information holds the key to seizing more control over the credit recommendation they receive and the finance they can access to help them run their business.’

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