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Monitor Alerts
It is crucial that you are notified of changes to your customer/supplier status as they happen in order to minimise exposure to your risk. The Red Flag Alert real time email facility will warn you of these changes, giving you the intelligence to prioritise your actions.
Red Flag Alert provides accurate and up-to-date information to support good business decisions. Below is a list of the major alerts, what they mean and the significance to your business.
Petition Notification – A petition is generally issued when a large debt is outstanding and no effort has been made to reach a reasonable settlement. The actual debt is not in dispute and time outstanding can be anywhere between three to six months by the time of the hearing. Extreme caution is advised.
High Court Writ – Is enforced by the High Court with associated penalties being much higher than those imposed via a CCJ. Extreme caution is advised.
County Court Judgment >£5,000 or Multiples thereof – In this case, a large one-off CCJ has been issued or in a period of three consecutive months multiple CCJs have been issued: with either of these alerts it still remains a significant action and caution is advised.
County Court Judgment <£4,999 – With the onset of a court proceeding against any company, caution is always advised as there must have been a reason for the CCJ. We would advise that sometimes these debts can be in dispute and both parties may feel they are right. Caution is advised, but early action on your part should avoid a bad debt.
Director Disqualification – This serious action is only taken by the DTI or courts when they have evidence of serious malpractice or fraud. Immediate qualification of your business relationship is required.
Director Change – A strong indication, alongside other warnings, that a company is facing insolvency issues. If past director performance indicates a trend to insolvency, then extreme caution should be taken and a request for prompt payment made.
Striking off Notice – Companies House registers this notice if, for a period of time, it has received no notifications from the company of its accounts and returns. This is a sign that they have ceased to trade or an indication of audit problems, either way a query should be raised if payments are outstanding.
Significant Change in Credit Limit – Changes in limits will often be an early indication of adverse changes in the company's position, which could be linked to legal and payment history.
Insolvent Accounts – Often an early sign of the changing position of a company. Although many have bounced back from a bad year of trading you should always use caution and track payments carefully.
Red Flag Alerts will also be sent out when:
• The registered name has changed
• The business address has changed
• The credit limit increased or decreased
• Late accounts have been filed