Almost one in nine UK fenestration businesses now have ‘poor’ or ‘very poor’ credit ratings as the financial implications from the pandemic and a difficult start to 2020 begin to show, according to new research by Insight Data.
The figures come with a further warning that company leaders fear that problems of financial instability in the entire supply chain may only be the tip of a very large iceberg and much worse may yet be to come.
Insight Data recently analysed the financial data of over 9,075 fabricators and installers and concluded:
- 1,038 companies had poor or very poor credit ratings.
- 12% of profiled fabricators were deemed as high risk.
- 12% of profiled installers were shown to have poor credit ratings
Although many businesses in the fenestration sector are now looking for new ways to target the most relevant and high yielding leads, avoiding credit risk prospects should be a priority, said operations director Jade Greenhow, pictured.
“Businesses in the industry are now looking for financially ‘safe’ leads,” she added, “Doing business with companies that seem keen but have been hit hard by coronavirus may be a risky strategy. If that prospect is ‘in the red’ they may not be able to pay for services or orders they have made.
“With our comprehensive data, sales and marketing platform Salestracker, you can check the financial health of potential customers before you start working with them, using up-to-date information from a leading credit rating agency.”