restrict access to credit

Companies Act Reforms Restrict Access to Credit

Companies Act Reforms Restrict Access to Credit

Businesses should update their credit application process now that the Companies Act reforms have been introduced or they may struggle to access finance, credit reference agency Equifax has warned. In order to cut cases of identity theft, the Companies Act (2006) has been amended so that company directors will no longer be required to publicise their home address at Companies House, but can use their registered office address. However, according to Equifax, removing this data from the public domain will make it harder for organisations lending credit, such as banks, to run suitable background checks on directors to ensure that they are worthy of the loans. “Some organisations will want to do a consumer check on small businesses when they apply for credit,” said Equifax head of ... »