We have created a partnership with Lightbulb Credit to create our Corporate Credit Rating Advisory service to help businesses improve their credit scores, overcoming a range of problems as well as unlocking opportunities to support growth.
Sector
Engineering
Headlines
- Recently sold business experienced a slump in ratings
- Their overall risk banding dropped due to director changes and shareholder volatility
- The drop in ratings was impacting key supplier terms and operational capabilities
The situation
This specialist auto engineering company was recently sold for c£180m and immediately after the sale experienced a slump in their ratings. This can be a common side-effect after the completion of a sale and was caused by the new company information filed on director changes and shareholder volatility. Their overall risk banding had moved to “high-risk” prompting several key suppliers and customers to become concerned about the stability of the business.
What we did
A sudden slump in ratings post sale can cause noise with existing and prospective employers. It was vital that this business re-gained their pre-sale business risk banding of “low-moderate” to maintain their key supplier on terms.
Lightbulb Credit explained the nature of the transaction and the specific director changes to the agency in question. They also highlighted a significant cash injection from the new owners, validating the strength of the new ownership. By sharing YTD MI and explaining irregularities in supplier payments during the last few days of the sale as a transaction balance sheet was agreed by both sides, the agency was satisfied that the risk banding should be reviewed.
The outcome
In just three days Lightbulb Credit improved the overall risk banding of the business back to its pre-transaction level of “low-moderate”, enabling the onboarding of new suppliers and the ability to acquire new company vehicles. By engaging directly with the agencies, Lightbulb Credit enabled the acquired entity to receive the full benefits of the financial and structural strengths of the original business.
Corporate credit improvement service
Our credit improvement service provides businesses with a solution to improving their trade credit rating. The process is simple and fast, with improvements regularly achieved in a matter of days. The service is also completely risk-free as the business only pays on agreed results and clients have the reassurance that all cases are handled with complete confidentiality.
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