More UK businesses than ever have negative credit ratings

The amount of UK companies that have a negative credit rating that may make it hard for them to obtain finance or any reasonable credit terms from their suppliers has continued to increase over the last three years, according to new research carried out by Graydon UK the credit risk management agency.

The study took a look at UK businesses and discovered that 69% were considered to be either ‘above normal risk’ or even worse considered ‘high risk.’ The risk terms were assigned to the businesses after they either struggled with financial difficulties or defaulted on previous trade payments.

This is slightly higher than in 2009 when the same survey was conducted and only 60% of UK businesses were found to warrant the ‘above normal risk’ or ‘high risk’ label. Perhaps more telling may be the fact that only 5% of businesses in today’s current survey were found to warrant the ‘low risk’ rating compared with 13% back in 2009.

Spokesperson for Graydon UK, Gordon Skaljak stated that the figures show that it is very important that companies continue to share their financial information to help increase their credit rankings and allow them to seek out lending options from alternative sources.