Press Release: Credit should be closed for 12,985 companies
On 1 October, the credit assessments of 12,985 companies became negative due to the absence of the last annual report. This is 1000 companies more than at the same time last year.
The change concerns companies that so far have had positive credit assessments and who have not submitted their annual report for 2016. According to Alar Jäger, the Development Director of Creditinfo Eesti AS, the delay in disclosing the data indicates that the companies are knowingly trying to hide poor economic results and are most likely terminating their activities.
In the event of a negative credit assessment, the credit risk is very high and Creditinfo does not recommend selling to such a company on credit. Therefore, a negative credit assessment may reduce the possibility of getting a loan from a bank, influence suppliers to establish more strict credit conditions on the company or deprive the company of new clients.
“Creditinfo reminded all companies to submit their report and warned them of the changes to credit assessment,” Jäger said. Recalculation of the credit assessment does not concern new companies nor those for whom the end of the financial year was less than two months ago.
Credit assessments have changed the most in the wholesale and retail sector (2292 companies), professional, research and technology services (2194 companies) and real estate activities (1260 companies).
Creditinfo Eesti AS (former name Krediitiinfo AS) has been issuing credit assessments for all Estonian companies for more than 20 years. These assessments are used by creditors in many Estonian sectors, including banking, telecommunications, fuel and commerce, to make everyday credit decisions. A credit assessment is prepared on the basis of information concerning a company’s economic, financial and payment discipline and is recalculated each time the data influencing the assessment changes, including in annual reports.
Creditinfo Eesti AS is the largest and most experienced company in the Estonian credit information sector, its main activity being the risk management of Estonian companies.
Alar Jäger, Development Director at Creditinfo Eesti AS
T: +372 665 9643