Businesses offered free credit checking to combat bad debt

Lloyds TSB Commercial Finance offers customers free, online credit rating facility, Firstcheck, to identify risk of cash flow issues caused by late payment.

Lloyds TSB Commercial Finance is offering a free, online credit rating facility to help businesses identify potential risks in their customer base.

From today (15 July) to 12 August, Lloyds TSB Commercial Finance's new and existing clients can use its Firstcheck system to obtain credit information on an unlimited number of current and prospective customers, free of charge.

The service provides credit checks on 3.5 million UK firms and is used to determine payment terms or credit limits for new clients.

It also evaluates current business payment performance data gathered from a daily invoice flow through Commercial Finance's factoring operations, which is one of the biggest in the UK.

The decision to provide free access to Firstcheck follows the latest Business in Britain research carried out in June by Lloyds TSB, where nearly a third (30 per cent) of companies reported cash-flow problems, with 65 per cent citing late payment by customers as the main cause.

Tracey Gills, credit manager at Lloyds TSB Commercial Finance, commented: "In tough trading conditions, late or non-payment by customers can have a disastrous effect on cash flow and is often the main reason why a business begins to struggle.

"Regular credit checking enables a company to spot risks within their existing client base and make contingency plans to deal with any defaults.

"Firstcheck also provides important peace of mind by enabling firms to assess the credit worthiness of new customers before they enter into any agreements.

"Along with our factoring, invoice discounting and debtor protection facilities, Firstcheck shows we're committed to providing a range of solutions to help firms maintain a strong cash flow."

Amongst Lloyds TSB Commercial Finance's customers who recently used Firstcheck is ICS Waste Management and Recycling, based in Nottinghamshire.

Co-owner Paul Glover said: "We use Lloyds TSB Commercial Finance's credit checks on all our customers, to decide whether to give them a credit or cash account. The Firstcheck system is simple and user-friendly and gives us more confidence during the current downturn."

Lloyds TSB Commercial Finance aims to complete 70 per cent of credit check requests within 40 minutes, with the remainder conducted within 48 hours.

For more information on Lloyds TSB Commercial Finance's Firstcheck service, please call 0800 55 00 22.