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The Health Rating System
THREE RED FLAGS (HIGHEST)
For any concern carrying three Red Flags no credit terms should be offered or trading undertaken and a full disclosure of the situation should be obtained.
TWO RED FLAGS
These are businesses where serious detrimental information has been identified. Trading in these circumstances is very high risk. It is advisable to review the full record in the Red Flag database.
ONE RED FLAG
These businesses will be higher credit risks due to their financial results, past trading history, lack of information or currently have detrimental information against them. They may be slower in paying their suppliers and it is recommended that any trading undertaken be supervised carefully. All monitoring notices received should be reviewed immediately and acted upon quickly.
BRONZE
Bronze companies will be an average credit risk whose financial position and trading results are not as strong as Silver companies. They may even be new companies that have yet to file their accounts. It is likely that not all payments are made to terms and it is advisable to review any monitoring notices received on these companies.
SILVER
Silver companies will usually be well managed and established companies in a sound financial position and with satisfactory trading results. They are likely to pay suppliers reasonably well and can be regarded as good credit risk.
GOLD
Gold companies will have traded for many years, have strong balance sheets, excellent trading results and likely to pay suppliers to terms and have an unblemished credit history. Trading with Gold companies can normally be undertaken with complete confidence. Typically these would be quoted companies or large private groups.
NOT TRADING
This simply indicates that according to information filed at Companies House the company had a non-trading status. Should credit be sought in the name of the company care should be taken and a full disclosure sought.
INSOLVENT
Company has undergone some form of Insolvency; please check the full record. All credit transactions should be stopped.
Striking-Off action
A Striking-Off action at Companies House has been registered against the company or limited liability partnership. This can be voluntary or instigated by Companies House. The full record should be reviewed and if credit is sought then care should be taken and a full disclosure requested to ascertain the current trading status.
BRONZE (non Ltd)
This is likely to be a sole trader or partnership that has been trading for some time and there is no detrimental information against the business. These businesses are not required to file financial information and can only be regarded as an average credit risk.