What is CredTech ?
by Rory Traynor
We gather data more regularly and from more sources than our competitors do. Our database is updated in real-time, so our customers know as soon as something changes with the companies they monitor.
We also perform our own analysis and calculations, turning up-to-the-minute information into valuable insights that our customers can rely on to guide their decision-making.
National databases
Companies House
We draw data from publicly available national business databases like Companies House. This gives us financial information on every registered UK company, including:
- Cashflow
- Stock valuation
- Turnover
- Leverage
- Profit and loss
- Change of directors
- Changes to accounting periods
- Capital expenditure
- Asset valuation
- Fixed charges over assets
Our integration with Companies House allows you to read documents from its register.
The Gazette
The Gazette is a public journal and database that advertises statutory notices from UK court proceedings. The Gazette’s data feed connects to Red Flag Alert. Our customers know as soon as a winding-up order, winding-up petition or strike off application is published against a company they are monitoring.
UK Land Registry
HM Land Registry records all ownership of land and property in England and Wales. This includes the names of the people that own the land/property, any mortgages and leases over it, as well as any changes that come into play. This is vital information - if your customers’ debts begin to outstrip their asset value then they are technically insolvent.
Registry Trust
The Registry Trust lists all judgments, orders, and fines for the UK and Ireland — including CCJs. If a business has a CCJ, it can be a sign that it is struggling to make debt payments. Red Flag Alert tells you when a business gets a CCJ and whether it will affect their ability to repay debt.
The London Stock Exchange
The London Stock Exchange provides a wealth of data on listed companies. We collect data such as profit warnings and regulatory announcements. Every public company failure in the last two years was preceded by at least two profit warnings.
Government databases
Government databases offer a wealth of company data that can be used to make financial health predictions. For example, a company becoming VAT-registered is an indicator of financial health and good management practices. If a company fails to pay VAT then HMRC will issue a petition which Red Flag Alert will detect.
Advanced Data Analysis
Our AI algorithm is at the heart of Red Flag Alert. It takes new and historical business data and turns it into powerful insights. These insights help our customers draw more accurate conclusions.
SIC code refinement
SIC codes classify the type of economic activities undertaken by UK businesses. This helps you understand if a company’s industry is growing or struggling. The problem is Companies House SIC codes are vague.
We invested in machine learning to revolutionise the way we assign SIC codes. This has resulted in highly accurate codes that can be relied on when making decisions for your business.
Decision systems
Many of our customers use Red Flag Alert to make definitive yes/no decisions. Examples include:
- Should you extend credit to this company?
- Should I pursue this company’s business?
We make several calculations to help provide this information.
Loan propensity score
Loan propensity score is a company’s ability to take on debt. This helps indicate several things depending on the company’s situation, including whether it will grow or if it is likely to experience bad debt.
Growth propensity score
Most of our competitors only measure growth by a business’s ability to ingest debt. This overlooks a large portion of the UK’s economic growth.
Red Flag Alert is different. We use the OECD’s definition of a fast-growing company and identify which businesses meet these criteria. This gives our customers an accurate picture of growth in regions and industries.
Credit risk score
We create a credit risk score for every business for use in our company credit checks.
Estimated turnover
Most of our competitors provide estimated turnover based on a company’s current financial statements.
We take this further. By measuring this year's estimated turnover against previous years, we can show which businesses are growing fastest and have the greatest potential for further growth. We make similar calculations for EBITDA.
Expert Analysts
Our team of elite analysts review our scores in real-time to make sure no information has slipped through the net. The combination of algorithms developed over decades and additional checks and balances gives our credit scores a unique level of detail and insight.
Creditor services data
If a business has incurred bad debt then it is three times more likely to enter insolvency in the next 12 months. We take data from Companies House and use it to calculate what impact bad debt will have on companies that have incurred it.
Anti-Money Laundering Data
Red Flag Alert also draws data for its AML checks from a range of publicly available sources, including:
- UK Credit Header
- Edited Electoral Roll
- UK Land Telephone
- UK National ID Register
- UK Driving Licence
- UK Passport
- International Passport
- UK Mortality
- National Change of Address
- International Sanctions & Enforcements
- PEP Intelligence
Is Red Flag Alert’s Data GDPR Compliant?
Yes, Red Flag Alert’s data is fully GDPR compliant and helps you meet data protection regulations.
A key part of GDPR is being able to prove that your data is up-to-date and acquired through legitimate sources.
Our data is sourced from publicly-available databases and is updated in real-time every day. By connecting our API to your CRM you can ensure that the information you use stays up-to-date.
Discover How Red Flag Alert’s Data Can Power Your Business
Red Flag Alert’s data is the most accurate and detailed available. If you need a flow of leads for your sales team or to check the financial or regulatory risks posed by your customers, then book a demo today and find out how we can help.
