Companies urged to beware 'recession' accounts

Private companies may have to provide confidential accounts in order to provide a meaningful snapshot of their financial position.

These calls have been repeated by the credit insurance community, which provides cover against the risk of a company defaulting on a payment after receiving credit by a supplier.

"Recession era" accounts from December 2009, due by September, may have to include the management accounts which are compiled on a monthly basis if they want to preserve their credit scores.

Xavier Denecker, UK managing director of credit insurer Coface, told the Daily Telegraph: "If their situation is improving in 2010 then let them provide credible management accounts and our credit appetite will increase."

For some time, the credit insurance community has been urging companies to hand over management accounts, warning that it could threaten the recovery of the UK economy if businesses refused.

Fabrice Desnos, chief executive of Euler Hermes UK and one of the most vocal campaigners for more timely accounts, added: "If they feel the information they are publishing in Companies House will reflect negatively on them and they have a better story to tell I can only encourage them to contact credit insurers."

Further reading:

Desnos: Failures not the fault of credit insurers