- What is a company CCJ Check?
- How to check if a company has a CCJ?
- Why do you need to do a CCJ check on a company?
Before you enter into a new business contract or establish a partnership with another company, it is always recommended to carry out due diligence before. Now, due diligence is expected to involve a credit report of the said company. If the particular company has had a county court judgment, it will show that too. In this blog, we will explain what exactly a CCJ is and how you can run a CCJ check on a company.
What is a company CCJ check?
CCJ means County Court Judgement. It is a court order taken out by a creditor against a company. The creditor goes to the court to take action against the company that owes him money.
The court order basically tells a company to pay back the money it owes to a debt. There is a specific time frame allotted to the company to respond, which is usually two weeks or 14 days.
When a company receives a CCJ or County Court Judgement, it stays on the Register of Judgements, Orders, and Fines for six years. This information helps loan companies and banks to decide whether or not to give that company a loan or credit.
Therefore, having a CCJ can have a serious impact on a company’s credit score. If the company ignores a CCJ, the court can then may take more serious legal actions against it.
When a company has a CCJ, the CCJ information is recorded on the Register and therefore, appears to the company’s credit profile for six years even if the company pays off the debt within this time.
How to check if a company has a CCJ?
There are two ways of running a limited company. One is by using a credit agency and the other is to use a public record source. Whichever way you choose, it is highly recommended you do at least a company CCJ check free before arriving at your business decision.
CCJ information about companies is available on public records and accessed from a paid website online. To be able to carry out these searches online through the website, it is important that you have the necessary details about the limited company such as the company’s full name and the officially registered address of the company.
Running this type of paid company CCJ check will show you a report that includes all information about the company’s business, court orders, CCJs, high court judgments, and fines. The report is usually compiled based on the data from the official register of the UK government and therefore, it is always up to date.
However, the alternative way is easier and much more simple. There are a lot of companies out there who specialize in carrying out this type of background checks on companies in the UK. Now, there are a lot of websites that will claim to offer “company credit check” but the key is to choose wisely.
Stick with a legitimate business that has the right expertise to conduct a limited company CCJ check. If you need to run a company CCJ check free, you can approach DataGardener. They have a good name in this particular field.
The CCJ register includes details about the company such as the full name of the limited company, its officially registered address, the court order details (e.g. court number and case number of the specific court order), the total sum of money involved in the debt.
The report will answer all your questions such as the number of CCJs that the particular company has, how long ago the CCJs were issued when the company was able to pay those debts, and so on.
Why do you need to do a CCJ check on a company?
If you are seriously thinking about going into a business with a particular company, then it is highly important to run a company CCJ check. You can take expert assistance to run Companies House CCJ check as the UK Companies House register holds information about it.
It is necessary because the report will tell you whether or not the concerned company has failed to pay its debts or not. If the company you are thinking of dealing with has failed to keep on top of its accounts or failed to keep its end of the bargain, then it might turn out to be a serious credit risk for you in the future.
You want to check that because it is always desirable to steer clear of persistent cash flow problems and histories of debt recovery. It can even mean the start of a slippery slope when it comes to trading.
Hence, it is essential to check if a company has a poor credit rating because a bad credit score means that the company will have potential difficulties to secure finance from loan providers, banks, and building societies. As a creditor, you will obviously not want to offer that company any credit.
If a company pays the CCJ in full, it will show up in the public CCJ register. However, the record will not be removed from the register. If the company pays the debt in full within one month of receiving the court order, it can have its record removed from the register. The court will issue a certificate of satisfaction and then only the company can have its data removed from the register.
It is always a wise decision to run a CCJ check on a company before you can make the decision of partnering with them. Once a company receives a CCJ, it can stay on the public register for a long time, as long as six years.
Companies House CCJ checks are performed by many specialized agencies who will give you a full report that is comprehensive and easily understandable. If you are concerned about carrying out credit checks or company CCJ check, then you can contact us to help you make the right judgment in your business decision.