Creditsafe Launches New Contract Limits

Creditsafe, the business intelligence experts, today announced that it is launching contract limit recommendations as part of its company credit report service to make it easier for firms to trade with companies when signing extended contracts, or sign agreements with enterprises that have significant variances in their revenues throughout a 12 month period. The new solution will be especially beneficial for firms signing annualised contracts, with payments spread throughout the duration of the period, who can now make a more accurate assessment of the total risk over the lifetime of the deal.

A contract limit is a yardstick for the maximum contract capacity on a single contract over a 12-month period. This new solution will benefit a significant number of companies, who will find the recommended limit for their enterprise has been increased. As a result they may benefit from companies signing higher value contracts with their enterprise, or find a supplier is prepared to advance them more stock or higher value services.

The contract limit is calculated by analysing a company’s turnover record and it’s existing credit limit. The system looks forward to develop the exact limit by then also analysing a number of factors such as the industry in which a business operates, accounting figures, total assets, tangible assets and called up share capital among other factors.

This change will particularly benefit firms where the seasonality of their business means there are significant variations in their monthly revenues, such as holiday companies and garden centres. The credit limits within the Creditsafe system remain indicative guides to help companies make informed decisions and mitigate their risks when trading with an enterprise. Some firms may still wish to extend credit or merchandise to a company in excess of these proposed limits, or be more cautious when assessing the appropriateness of trading with an enterprise.

David Knowles, business development director, Creditsafe, commented: “The market for business intelligence solutions continues to evolve and our customers are becoming ever more adept at assessing risk. These new limits enhance the capabilities of our solution, enabling customers to make even more informed decisions when assessing whether to trade with another business.

“With business credit remaining a key issue for many organisations this change will see some firms benefit from increased contract limits, which is of significant benefit to the recovery of the wider economy. With firms often signing annual contracts with payment terms spread throughout the period it makes sense for the contract limit to takes this method of business operation into account.”

“Creditsafe is committed to the continual improvement of our solution to ensure we meet the changing needs of our dynamic customer base. We not only offer one of the most predictive, analytical models in the marketplace, but we also ensure it is tailored to account for the varying operational needs of our customers.”

The Creditsafe Group

The Creditsafe Group is a privately owned and independently minded group of companies supplying up to the minute business intelligence through the dynamic Creditsafe brand.

Launched in Norway in 1997, more than 50,000 organisations across Europe currently benefit from the high quality simple to use suite of credit information, monitoring, international, integrated solutions and marketing products that the Creditsafe companies provide. Five Creditsafe Group reports are downloaded every second!

Creditsafe has offices in the UK, Germany, France, the Netherlands, Swedenand Ireland employing over 500 people and is fast becoming Europe’s leading supplier of on-line business intelligence.