Credit Limit

The Credit Limit is a measure derived by Company Watch and calculated giving consideration to the company’s size, level of trading activity, the degree to which it is already exposed short term to its creditors, its ability to repay them and its working capital position. It uses the H-Score®, the measure of the company’s financial strength, and the PoD®. It also takes into account the number and value of any County Court Judgments recently served against the company.