The majority of top motor retailers have average or above average credit scores despite challenging market conditions.
The news follows latest figures from Equifax ScoreCheck which analysed the credit scores of the top 15 motor dealers in the AM100 and found that 13 had scores that were average or above according to its ScoreCheck rating.
Neil Munroe, Equifax external affairs director, said: “Of course, these are the top companies in the AM league table, so it would be worrying if many of them had below average scores.
“But what is particularly encouraging is the number that have ‘very good’ and ‘good’ scores given the immensely difficult trading conditions they have faced in the last year.”
Equifax is encouraging all businesses to ensure they credit check any new companies with which they trade as well as monitoring the on-going financial status of key customers and suppliers to ensure they don’t get caught out by a change in their financial fortunes.
Munroe said: “We have seen the use of some of our business monitoring alerts increase threefold in the past year.
“We think this phenomenal rise demonstrates that businesses have really switched on to the importance of staying up to date with the status of customers and suppliers, in order to protect cash flow and safeguard against bad debt.”
To download the top 15 AM100 dealer ScoreCheck scored for August 2009 click here.