Home  /  GUIDES

Credit risk,
explained in plain English.

Thirty-eight guides on the terms and signals behind company credit decisions. Every guide is built on the public record and links to the free tools that check it.

Insolvency and the court process
Insolvency

What does company insolvency mean

Company insolvency means a company cannot pay its debts. The two legal tests, cash flow and balance sheet, and what insolvency leads to in practice.

Court records

What Is a CCJ and How It Affects Credit Risk

A County Court Judgment (CCJ) is a court decision that a company owes money. How CCJs are registered, how long they stay on record, and what they mean for credi…

The Gazette

What is a first Gazette notice and why companies get one

A first Gazette notice announces that Companies House intends to strike a company off the register. Why notices are issued, the two-month objection window, and …

Strike-off

What Is a Company Strike-Off and What It Means for Creditors

A company strike-off removes a company from the Companies House register. How strike-off works, the two-month objection window, and what it means if the company…

Winding-up

What happens after a winding-up petition is filed

The timeline after a winding-up petition is filed: advertisement in The Gazette, the 7-day window, the hearing, and the outcomes for the company and its credito…

Insolvency

Administration vs liquidation: the difference

Administration tries to rescue the company or its business. Liquidation ends the company and sells its assets. How the two insolvency processes differ, and what…

Rescue

What is a company voluntary arrangement (CVA)

A CVA is a formal deal between an insolvent company and its creditors: agreed repayments over time while the company keeps trading. How CVAs work, who votes, an…

Insolvency

Who gets paid first in an insolvency

The fixed order in which creditors are paid when a company is insolvent: secured, costs, preferential, floating charge, unsecured, then shareholders. Where supp…

Insolvency

Signs a Company's Insolvency Is Fast Approaching

The warning signs that a company is approaching insolvency: overdue filings, CCJs, winding-up petitions, negative net assets, rising gearing and failing interes…

Reading company accounts
Scoring

What Is the R-Score

The R-Score is Black Flag Alert's free 0-100 credit risk measure for England & Wales companies. What goes into it, how to read it, and where the calculation …

Balance sheet

What Are Net Assets and Why They Matter More Than Turnover

Net assets are what a company owns minus what it owes. Why net assets say more about credit risk than turnover, and what negative net assets mean.

Ratios

What Is the Cash Coverage Ratio and Why It Matters

The cash coverage ratio compares a company's cash to its short-term liabilities. How to calculate it, what a healthy reading looks like, and why it is one of th…

Accounts

How to Spot Risk in a Set of Company Accounts

A ratio walkthrough for non-accountants: the five figures in filed accounts that reveal credit risk, what healthy looks like, and what to question.

Accounts

Why a Change of Accounting Period Is a Red Flag

A change of accounting reference date can be routine, but it is also a known way to delay bad news. When a period change deserves a closer look.

Credit reports

Warning Signs in a Business Credit Report Most Businesses Miss

The lines most readers skip: satisfied CCJs, balance-sheet-only accounts, charge clusters near the year end, overdue filings and the five-year trend behind the score.

Company types

What are zombie companies

A zombie company survives but cannot grow: it earns just enough to service its debts but not to invest or thrive. How to spot them on the public record and why …

Scoring

How to Improve Your Own Company's Credit Standing

Filing dates, judgment timing, equity and gearing: the moves that lift a company's standing, and how quickly each one reaches the public record.

Scoring

Why Credit Risk Cannot Be Measured in Snapshots

Filed accounts go stale between filings: nine months to file, up to two years between sets. How risk moves in the gap, and why the trend beats the snapshot.

Statistics

Why a Falling Insolvency Rate Is Not the Same as Falling Risk

The rate fell to 50.3 per 10,000 companies. What the average hides: a growing register, sector rates from 60 to 268, and three in four insolvencies now CVLs.

People and structures
Checks, onboarding and compliance
Due diligence

Seven Due Diligence Checks Before You Sign

Seven checks to run on any company before you sign a contract or extend credit: identity, status, accounts, judgments, insolvency events, charges and people. Al…

Credit checks

How to Credit Check a Company, Step by Step

A step-by-step method for credit checking an England & Wales company: verify identity and status, read the accounts, check judgments and petitions, then decide.

Credit checks

What a Company Credit Check Should Cover

What a proper company credit check covers: identity and status, accounts, judgments, insolvency events, charges, people and filing behaviour, and what to do wit…

Compliance

Know Your Supplier vs KYC: What Each Covers and When You Need Them

KYC checks people; Know Your Supplier checks businesses. What each process covers, what they miss, and when each is needed before you trade.

Compliance

What Is Enhanced Due Diligence and When Is It Required

Enhanced due diligence is a deeper level of counterparty checking for higher-risk situations. What EDD adds to standard checks and when it applies.

Scoring

Why Black-Box Credit Scores Are Not Enough to Analyse Risk

Most company credit scores are black boxes: a number with no published calculation. Why that matters, what a score hides, and why an auditable score changes the…

Credit checks

How to Quickly Assess a New Supplier's Financial Health

Six checks to run before giving a new supplier credit terms: accounts, filing behaviour, CCJs, petitions, charges and directors. Each one takes minutes on the public…

M&A

How to Use Company Credit Checks for Smarter M&A Decisions

Where credit checks fit in an acquisition: screening candidates, reading five years of accounts, testing the growth story, and writing the findings into the SPA…

People and structures

How to Conduct a UK Company Director Search

How to read the people behind a company: appointment histories, month-and-year of birth matching, disqualifications and the PSC register…

People and structures

Alternatives to Companies House for UK Company Intelligence

The Gazette, the judgment register, the Individual Insolvency Register, disqualification and FCA records: what each holds and when to read it…

Managing exposure