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Beyond Credit Scores: Smarter Ways to Assess Payment Risk in Construction
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Introduction
Relying solely on generic credit reference agencies to assess a company’s financial health can leave you exposed to unexpected risks. In construction, where margins are tight and late payments are common, you need a full picture of a customer’s payment behavior—not just their credit score.
While credit reports provide useful insights, they only tell part of the story. So, what other sources of payment information can help you make stronger credit decisions? Let’s break it down.
1. Real-Time Trading Experiences
Credit scores are often based on historical data, meaning they might not reflect a company’s current financial behavior. This is where real-time trading experiences make all the difference.
See exactly how a business is paying suppliers right now Identify clients with a history of late or missed payments Spot trends before they turn into bad debt
Example: A company might have a strong credit score but has recently started paying suppliers 60+ days late. Without real-time trading data, you wouldn’t know this until it’s too late.
Our Solution: We provide up-to-the-minute payment trends so you can see exactly how your customers are paying their suppliers today—not six months ago.
2. Industry-Specific Payment Insights
Construction payment behavior is different from other industries. Standard credit reports don’t always account for:
- Seasonal cash flow fluctuations
- Project-based payment structures
- Delays caused by slow-paying main contractors
Example: A subcontractor might appear financially stable, but if they rely on payments from a slow-paying main contractor, their cash flow could be at risk. Our Solution: Our industry-specific insights help you understand construction payment patterns, so you can avoid risky clients before they become a problem.
3. Public Records & Legal Filings
Legal filings and public records are indicators of financial distress that don’t always show up in credit reports. Some key indicators include:
County Court Judgments (CCJs) – Signs that a company has failed to pay creditors Winding-up petitions – Indications that a business is close to collapse Liquidation filings – Confirms when a company is shutting down
Example: A contractor may have a decent credit score but has multiple CCJs filed against them in the past year—this is a serious warning sign. Our Solution: We monitor trading experiences and industry trends to spot early warning signs of insolvency, helping you act before it’s too late.
4. Payment References from Industry Peers
Word-of-mouth is still one of the most powerful risk assessment tools. Speaking to other suppliers who have dealt with a potential client can provide insights no credit report can.
Get firsthand accounts of a company’s payment reliability Identify clients who delay payments to some suppliers but not others Spot businesses that prioritise certain payments over others
Example: A supplier might report that a client pays within 30 days, but another supplier says they take 90+ days—this inconsistency is a warning sign. Our Solution: We gather anonymous industry payment experiences so you can see what others in construction are experiencing.
Final Thoughts
While credit reports are useful, they’re not enough on their own. To fully protect your business, you need a multi-layered approach that includes:
Real-time trading data to see current payment trends Industry-specific insights that go beyond generic reports Legal and public records to catch warning signs early Peer payment references for firsthand payment experiences
Want to make smarter credit decisions? Let’s talk.
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