Does CEF report to credit agencies?

[ThatCompexDude]

Hi folks. Just interested to know if City’s reported to credit reference agencies like Experian? Just went Ltd so I’d be keen to know if I can build the companies credit score a little just by paying the wholesalers on time.

Thanks guys.

 

[Gavin John Hyde]

I think it would have to be very late for them to go to agencies... not seen my account on my experian report.

 

[LukeD]

would you even trust them to get it right !

 

[pc1966]

When the company I'm involved with first* tried to order a fibre wholesale line we had issues of credit rating as only ~8 months old and no published accounts yet, even though we had been buying stuff from wholesale places and paying promptly.

I suspect it is quite a negative thing - pay late and you get bad marks, not the other way round of good marks for paying as expected.

Not sure if it works for business credit cards but for personal rating having credit and paying off promptly helps. business credit cards normally take the whole lot by DD each month anyway, so again I suspect only failure to do so is going to be noted.

I used to have a business credit card with my old company, but that started before business accounts generally offered debit cards ("switch" as they were known for personal use at the time). Now we have business debit cards which have less charges than the credit cards but my pet hate is they have no transaction limit so lost/stolen abused and the can clean you out and, even if you get it refunded eventually, that is a massive business risk. So we keep most of the company money in a separate savings account (even though we get b-all interest) and only a modest amount in the working company account to cover DD requests and modest use of the debit cards, and transfer over as we need to.

[*] there is a whole tale of woe and incompetence on that story, but not for now.

 

[brianmoooore]

The last time I paid CEF on time was when they offered a 2.5% discount for doing so.

 

[Rockingit]

Generally speaking, a business credit score is made up of banking info and companies house data. Being late with payments on borrowing will absolutely knock you, as too will being late filing annual returns and so on. As a business ages, the agencies also take into account things like your annual returns, book assets and so on. This where it really helps to be disciplined with things like asset registers for tools and equipment, cost of sales stock (parts and materials) and so on because at the end of your first year you'll quickly realise that you only pay corporation tax on cash profits whereas to have a £20k inventory means that the company actually has geniune 'worth', it's not just an umbrella for you personally - and credit scorers like that.

 

[Rockingit]

The last time I paid CEF on time was when they offered a 2.5% discount for doing so.

I used to pay them ahead of time, to get the 2-2.5% discount. But then had a falling out with them so cancelled my account and no longer pay them anything!

 

[Risteard]

The last time I paid CEF on time was when they offered a 2.5% discount for doing so.

They still do.

 

[Gavin John Hyde]

They still do.

yep, paid an invoice yesterday by amex so get my airmiles/points for what ever i want to use it for plus 2.5% discount which considering i paid them more than £1k is a nice little payment every time.

 

[brianmoooore]

Haven't actually dealt with CEF for quite a while. I found I was spending far much of my time checking invoices for mistakes, and they also moved their premises to the other side of town, but I'm sure the 2.5% settlement discount has disappeared by then, along with the similar discount offered by the other electrical wholesalers I had accounts with.
Only active electrical account I have now is with Rexel, and they've not offered any payment discount.