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Thursday 22 April 2010

Dains are warning business owners of the potential negative effect on their credit rating of filing their accounts at the last minute.

A very financially strong company who applies for credit with a supplier could be turned down if the supplier obtains a report from a credit reference agency, which may mark down the company’s rating significantly, if accounts are filed late or very close to the deadline.

Andy McQuillan, Tax Partner at Dains said “Ratings can be downgraded as statistics show that a company was 9 times more likely to go into liquidation if they file at such a late stage. In addition businesses submitting their accounts at an earlier date, find their rating was likely to increase.

“However, many businesses may be unaware that credit rating agencies apply this rule, and could find their business harmed through no fault of their own."

For more information or advice please contact Andy McQuillan on tel: 0845 555 8844 or email tax@dains.com

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