New credit service aims to plug funding gap

A new credit information service for small businesses will launch this
summer, providing lenders and credit insurers with access to up to date
management accounts for the first time.

The offering from credit reference agency Graydon and Validis, the online
software provider who launched a new product with Accountancy Age last week, is
the first of its kind.

SMEs will be able to use the Validis software to validate and analyse their
monthly management accounts with the information converted into a common format,
to produce standardised feeds.

The validated information is then sent to Graydon and incorporated into its
existing credit information database.

Graydon MD Martin Williams said: ‘It will play an important role in helping
to restore the flow of finance to UK companies in what has become a market
starved by macro-economic conditions.’

Stephen Alambritis, head of public affairs at the Federation of Small
Businesses, said: ‘Last month the chancellor’s budget put in place a really
useful top up trade credit insurance scheme. This month the Treasury committee
reported on its concerns about the availability and terms of credit to the small
business sector and the slow movement on this issue by the banks. The Graydon
enhanced credit information service powered by Validis will definitely come to
the rescue of many firms wanting to access both finance and credit insurance
cover.’

Christopher Poll, head of Validis, said the new service meant UK companies
would no longer have to rely solely on historic annual statutory accounts filed
at Companies House.

‘SMEs are the backbone of the UK economy,’ he said. ‘If the nation is to
successfully navigate the current crisis, it is no longer sufficient for
organisations providing information to prospective creditors to base their
assessments on statutory historical data alone.

To try Validis Amatino go to
accountancyage.validis.com