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Risky Business

A blog by Martin Williams, external affairs spokesman of Graydon UK, focusing on business risks - from fraud to late payment. Martin has has spent the last 35 years in the credit information industry, and has been with Graydon UK, one of the top five commercial credit agencies in the UK, for the last 20. Apart from his PR duties, he teaches credit analysis to risk professionals and helps educate SMEs on the importance of maintaining a good credit rating. Martin is a Fellow of the Institute of Credit Management and is a sitting member of the Institute's Think Tank. He was also honoured by Credit Today, after being included on their Credit 100 list of people who have had the greatest impact in the credit industry during 2008, 2009 and 2010.

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Does race play a part in commercial credit scoring?

27 Apr 2009

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I read with interest in the FT on Saturday about a commercial credit agency in the UK that gave a profitable UK company a poor rating, due partly to the fact that neither director was a UK national. One of the directors of Powerchex called the action of agency Creditsafe discriminatory. I must say, i was surprised to see this in the paper. Being a Managing Director of a credit reference agency myself, i know the characteristics that make up our own scorecard, and race of Directors is certainly not present in the list .
In this case, the two Directors were Americans living in London.

I sincerely hope that as a nation, we don't send out a message to the world that there is no point their entrepreneurs coming to Britain because even if they succeed in building a strong business, they won't enjoy a good credit rating here!!!!
For more ,please see the FT article from 25th april-
http://www.ft.com/cms/s/d2d6ae06-3028-11de-88e3-00144feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fd2d6ae06-3028-11de-88e3-00144feabdc0.html&_i_referer=

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