Creditsafe to become Government designated credit reference agency
Creditsafe, the world’s most used provider of company credit reports, today confirmed that the Government has recommended it as a designated credit reference agency (CRA). The new appointment, announced in yesterday’s Autumn Statement, means that Creditsafe is one of only three CRAs that will be trusted by HM Treasury to receive SME credit information held by banks. It will contribute to a wider initiative introduced by the Small Business Act 2015 to increase financing opportunities for smaller businesses.
Creditsafe’s role as a designated CRA will be to receive SME credit information from designated banks and provide equal access to this information to all finance providers. This is a significant milestone in a major structural reform that will promote competition in the SME credit market.
During the application process the British Business Bank which was handling the process for Government stated: “The control of credit information by existing providers is a barrier to entry in the market for lending to smaller businesses. Opening up access to credit data held by the big banks will increase the reliability of credit scores, enabling alternative finance providers to make better-informed decisions about finance provision to smaller businesses.”
Creditsafe has been recommended to be designated as a CRA following a detailed due diligence procedure that analysed agencies’ capabilities in areas such as in-house product development skills to support the integration of bank data with existing credit reports, security and governance management and certification to relevant quality standards including ISO/IEC 27001:2013..
Rachel Mainwaring, Operations Director of Creditsafe, said: “We are delighted to be recommended for designation and to play our part in further opening up finance provision to smaller companies, who often need an alternative source of funding beyond the traditional big banks.
The appointment is another sign that Creditsafe is a trusted partner to business with a strong governance model and a growing influence in the international credit reporting industry. We are looking forward to contributing to the greater success of British business through this excellent initiative.”