Blog

Commercial CRAs play a key role in the economy by providing accurate, timely and complete data on businesses to lenders, including trade creditors, in order to support sensible, responsible decisions on extending affordable finance to those businesses requesting it.

BIPA recognises that this role in reducing the risk to lenders while supporting the availability of finance to SMEs, is vital as the economy recovers from the Covid restrictions.

The Government support schemes for business will be finishing during the third quarter of 2021 and many businesses are emerging into new trading conditions with new liabilities such as the Bounce Back Loans (BBLs) on their balance sheets. Their normal trading pattern may also have been impacted during the pandemic, which will further affect the Accounts they file with Companies House during 2021.   BIPA members will report this accurately to ensure a balance between reporting the facts to a potential lender/trade creditor and reflecting the ability of a business to pay their invoices.

There are many aspects of a business’s finances that can affect a credit score and the BIPA members aim to help lenders make decisions to grow their businesses based on credit worthy customers.  On a macro level, growth needs to be robust, sustainable and based on solid finances to support the UK’s economic recovery.