Bad debt. You hear about it all the time, but what is it? Bad debt is money owed by a customer who is unlikely to repay the debt, due to either being insolvent or in financial difficulty. Red Flag Alert (RFA) and the intelligent information it gives you can help protect you by using that information to limit bad debt.
Late payments are just one indicator that a company is experiencing financial distress. By knowing the early warning signs, you can actively manage that customer in order to reduce the debt they owe you. Using RFA is a good way of protecting yourself and reducing the risk to your business by identifying those customers in financial difficulties and proactively limiting, or stopping, credit or services to them.
Our unique health rating system enables you to identify companies who are in financial difficulty. Health ratings range from gold (excellent health rating) to three red flags (high risk of insolvency). Our system takes into account all the deciding factors when rating a company and is based on their ability to operate by monitoring 42 known indicators of business health, including CCJs, Companies House data and payment history. Our monitoring function will also alert you if there is a change in circumstances, so you will always be ahead of the game and able to make decisions based on all the available facts.