3: RFA Health Ratings

The following ratings are used to indicate Red Flag Alert's rating of a company:

Short Code

Short Description

Long Description

redflag3

Three Red Flags (Highest)

Companies are in the weakest 20% in their size category and display risk factors that might include a deteriorating financial position, sub-optimal gearing/liquidity, and/or the presence of more recent, or significant legal notices, but with additional risk factors, such as recent county court judgments of a materially significant value. Very high risk and guarantees advised, and 56% of companies with three red flags will cease to trade in the next seven days.

redflag2

Two Red Flags

Companies are in the weakest 20% in their size category and display risk factors that might include a deteriorating financial position, sub-optimal gearing/liquidity, and/or the presence of more recent, or significant legal notices, but with additional risk factors, such as recent county court judgments of a materially significant value. Very high risk and guarantees advised.

redflag1

One Red Flag

Companies are in the weakest 20% in their size category and display risk factors that might include a deteriorating financial position, sub-optimal gearing/liquidity, and/or the presence of more recent, or significant legal notices. The risk is elevated, and suppliers should seek suitable assurances or guarantees.

amber

Amber

Companies are newly incorporated or have only passed the lower threshold of the credit score algorithms, and display some financial, payment or filing characteristics that make them an elevated risk. Considered to be moderate risk and open credit is only recommended with caution.

bronze

Bronze

Companies will be in acceptable health. They may not have published accounts or are a newly formed, but nothing significantly detrimental is known. Where financials are present, gearing may be higher than normal, or liquidity may be lower than ideal. The financial trend may be down, and there may be some history of legal notices. Considered to be a fair trade risk and open credit is recommended.

silver

Silver

Companies will be stable overall. They will have healthy financials, and a normal history of filing compliance. Gearing will be within an acceptable range, with reasonable levels of liquidity. If the trend is not upward, any declines will be modest, with few if any significant or recent legal notices. Considered to be low risk and open credit is recommended.

gold

Gold

Companies will be very healthy overall. They will have sound financials, a good history of filing compliance, with ideal levels of gearing (proportion of loan capital), optimal liquidity, and a generally favourable trend, with no significant or recent legal notices. Considered to be very low risk and open credit is recommended.

NT

Not Trading

This simply indicates that according to information filed at Companies House the company had a non- trading status. Should credit be sought in the name of the company care should be taken and a full disclosure sought.

INSOLV

Insolvent

Company has undergone some form of Insolvency; please check the full record. All credit transactions should be stopped.

str

Strike Off

A Striking-Off action at Companies House has been registered against the company or limited liability partnership. This can be voluntary or instigated by Companies House. The full record should be reviewed and if credit is sought then care should be taken and a full disclosure requested to ascertain the current trading status.

dissolved

Dissolved

This company has been dissolved by Companies House and no longer exists. Should you be trading with a company in this name you should 1) review your situation immediately, 2) obtain a full disclosure of affairs before entering into any further transactions and 3) ensure you are trading with the correct company going forward.

N/A

N/A

A Health Rating is not currently available.

discontinued

Business Discontinued

This business has been discontinued