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Press release: Krediidiinfo recommends withdrawing credit from 6611 companies

2. Oct 2012

Due to the lack of updated financial information, credit ratings of 6611 companies became negative from 1 October.

The changes concern the companies that had positive credit rating before but failed to submit the annual report for 2011. When the credit rating is negative, the company’s credit risk is very high, and Krediidiinfo AS does not recommend selling to such companies on credit. 

A negative credit rating may have an effect of supplier making them apply stricter terms of credit, may limit the company’s opportunities to take out a loan from a bank or repel potential new customers. 

To prevent payment defaults, we recommend you check the credit ratings of your customers, partners and supplier before concluding a deal. Krediidiinfo’s experience proves that companies often tend to postpone disclosing information to cover up low economic results. 

The credit rating is calculated form the information about the company’s economic, financial and payment behavior and used by large-scale creditors in banking, telecommunications, fuel, commerce and many other sectors. 

The recalculation of credit ratings does not apply to newly founded companies and the companies whose financial year ended later than six months ago. 

Krediidiinfo AS helps companies in Estonia avoid financial losses, manage credit risks and make credit decisions automatically. Krediidiinfo AS is among the companies belonging to Experian Group, the world leader in information services operating in over 40 countries all over the world and provides 15,500 jobs.