A county court judgement (CCJ) is issued by county courts to enforce debt payments and will have severe consequences for a business's reputation and financial standing if left unaddressed.
Find out why regularly checking for CCJs is essential for your businesses and how you can check for CCJs.
Why should I check for CCJs?
Protecting your reputation
CCJs can be damaging to your business's reputation. When potential clients or business partners discover CCJs against your company, it can harm their trust and confidence in your ability to fulfil financial obligations. Regularly checking for CCJs enables you to address any issues promptly, demonstrating your commitment to financial responsibility and maintaining a positive view in the eyes of your partners and customers.
Minimising financial risks
Ignoring CCJs can lead to significant financial risks for your business. A CCJ not only requires you to pay the debt but may also result in additional costs, such as court fees and interest. Failing to settle a CCJ within the specified timeframe can even lead to enforcement actions like bailiffs seizing assets or a winding-up petition being filed against your company. Regularly monitoring CCJs allows you to proactively address any outstanding debts, negotiate repayment plans, and avoid the escalation of financial consequences.
Unresolved CCJs can affect your business's cashflow, making it difficult to manage day-to-day operations and meet ongoing financial commitments.
It will also affect your ability to access capital via business loans if you have a cashflow gap. Most lenders will reject an application if a business has a CCJ, significantly hindering your ability to maintain a positive cashflow. By staying aware of any CCJs against your business, you can plan ahead, allocate funds, and ensure that your cashflow remains healthy.
How to check for CCJs
Thankfully, checking for CCJs is a relatively straightforward process.
Just login to your Capitalise for Business account to view your business credit profile. You will be able to see any legal notices registered against your business and adverse credit information, such as a CCJ.
Top tip: When you subscribe to a Capitalise plan, you can receive immediate alerts on CCJs being registered against your business, empowering you to take immediate action, such as disputing inaccuracies or negotiating settlements, to protect your cashflow and keep your business running smoothly.