Bad Credit Rating for Company

Bad Credit Rating for Company

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We took on a client three years ago because of very poor service by previous accountant as he was not completing the work on time. At the point of appointment the first set of accounts accounts and annual return were overdue and a letter had been issued by companies house stating that the company would be struck off and an advertisement would be posted in the local gazette. We immediately called companies house, informed them the company was trading and would be required and filed the accounts shortly afterwards. A form DISS40 was shown on companies house records to show the strike off was discontinued. Since then we have completed and filed two sets of accounts on time showing good profit.

However whenever the client attempts to obtain credit (in this instance it was a mobile phone contract) he is informed the company has a very bad credit rating (apparentely worse than a newly incorporated company)  which the mobile phone company puts down to the fact the company was almost struck off and the submitted accounts seem to be irrelevant. In addition to this the credit agency dont appear to take any notice of the DISS40 when scoring our clients business.

If the company is going to always have a bad credit rating it is likely we will need to close it down and start afresh as the client will need to obtain lending if the business is to expand.

I was wondering if anyone else has come across this and if so were they able to resolve without the need to close the company.

Thanks

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By Roland195
16th Jan 2012 15:26

Arcane art

Credit ratings for companies are mysterious processes that seem to be based entirely on the Companies House filing history.

As far as I can tell, most of them are utter nonsense (at least for small companies entitled to file abbreivated accounts). You have an example here in that for some reason the agencies issue a rating to newly formed companies that have not filed a document yet.

Interestingly, the banks seem to be aware of this and don't seem to put any stock in them though.

 

 

 

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