Customer showing as not trading

jewels.pjewels.p Font Of All KnowledgeRegistered Posts: 1,774
We have a Customer who is fairly new. We started dealing with them back in March and we have had problems the whole time getting money out of them. I have recently signed up to Creditsafe and immediately looked the company up. They are showing on Creditsafe as non-trading. I spoke to my Account Manager at Creditsafe and she told me that as soon as they started trading they should have informed Companies House that they were trading and as they are showing as non-trading if we tried to take them to court for non-payment we wouldn't stand a chance of getting any money. When I said to the Customer that I had done a credit check and he was showing as non-trading he said to me that the company wouldnt show as trading until their accounts had been filed. This is the opposite to what Creditsafe told me. I looked up some of the documents and over the past six months there are several documents filed at Companies House eg Director Changes but they are still showing as non-trading.

After waffling on there can anyone tell me at what point this company should show as trading....when they file their accounts or as soon as they started trading?

Thanks a lot if anyone can help.

Comments

  • jenny3549jenny3549 Trusted Regular Registered Posts: 472
    Hi Jewels,

    Creditsafe are correct, not your customer. To be showing as non-trading they must have declared this to Companies House! New companies, whilst not having any accounts filed for you to look at would still show as trading and will often have a small credit limit suggested (reason shown, new company).

    Your client is not being honest with you!
  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    I'm not sure whether, if they filed dormant accounts previously then started trading, they would not show as trading until they filed trading accounts? I'm sure someone will correct me if I'm wrong.

    Have you had a look at their status at Companies House yourself? I've never informed Companies house that someone has started trading, just filed their trading accounts.
  • groundygroundy Trusted Regular Registered Posts: 495
    Agree with Bluewednesday.

    You do not inform Co House that you have commenced trading. They only know when you file first years accounts
  • jewels.pjewels.p Font Of All Knowledge Registered Posts: 1,774
    Thanks for the replies. I will do some more digging.
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