UK SMEs that credit check customers are less likely to go out of business in their first year Thursday 21 May 2015 PDF Print Using a credit checking tool such as CreditHQ could be the difference between survival and going out of business for many SMEs New CreditHQ partnership with The Formations Company aims to make setting up a business even easier 21 May – New data analysis¹ has revealed that on average, UK small businesses that regularly credit check their customers are around 30% less likely to go out of business in their first 12 months than businesses which don’t credit check. The analysis by fintech start-up Ormsby Street comes as it announces a new partnership that will see its credit-checking tool CreditHQ become part of The Formations Company’s suite of services required to set up a business. CreditHQ is a free online tool that allows a small business to check their financial health, providing them with an understanding of their own credit rating and insight on how they can work to improve it. Small business founders will now get the chance to use CreditHQ when they form their new company with The Formations Company, which has all the tools required for easy setting up of a new company. “Using a credit checking tool such as CreditHQ could be the difference between survival and going out of business for many SMEs, especially in that notoriously difficult first 12 months,” said Martin Campbell, Managing Director, Ormsby Street. “It helps a small business establish a good credit rating and also addresses the issue of late invoice payment by providing insight on whether customers are likely to be good payers or not. This is something that few small businesses think to check, and making CreditHQ available to customers of The Formations Company provides a straight forward way of doing so.” The Formations Company is the most cost-effective way for a new business to form and has helped more than 250,000 UK small businesses form since its launch in 2009. It offers a range of extra services from a free consultation with an accountant or web developer, to assistance cre-ating business bank accounts and bespoke logo designs. The addition of CreditHQ to this suite of services looks to protect small businesses from late invoice payment and the cash-flow issues that can bring. CreditHQ uses data from seven million company records to check credit status and general financial health, and uses a traffic light system to advise small businesses whether a company is likely to pay them on time. It also provides regular updates on credit ratings, so a small business will be kept abreast of any changes in a customer’s ability to pay. Should a small business find themselves struggling with late payment of invoices, CreditHQ, which is used by more than 25,000 UK SMEs, also offers a straightforward service, backed by a leading debt recovery agency, to get those bills paid. “Forming a business can be bewildering, so we want to provide our customers with the very best services and tools to help them as they start their business journey,” said Piers Chead, CEO, The Formations Company. “CreditHQ absolutely falls into that category. Establishing a good credit rating and late payment of invoices are major issues for SMEs, so a free tool that addresses both will be invaluable to our users.”  Based on a 12 month analysis of users of the CreditHQ platform -ends- For further information: Paul Allen / Rise PR firstname.lastname@example.org / +44 (0) 7515 199 487 About Ormsby Street CreditHQ is built by Ormsby Street, a Software-as-a-Service business based in Old Street, London. Formed in 2014 to take over the operation of the financial data proposition of BCSG, Ormsby Street is developing the next generation of financial data services for small businesses. Its team of high-performing product innovators and software engineers are quietly taking sophisticated financial information and turning it into a next-generation digital tool to help businesses make good decisions about customers, suppliers and themselves. This press release was distributed by ResponseSource Press Release Wire on behalf of Rise PR in the following categories: Personal Finance, Business & Finance, Computing & Telecoms, for more information visit http://pressreleasewire.responsesource.com/about.