By Daniel Hunter
Experian, the business information company, says that small to medium-sized enterprises (SMEs) need to be aware that submitting less financial information about their companies could impact on their ability to secure finance in the future.
From 30th September 2013, the Government has decided that the UK’s 1.5 million micro-entities will become exempt from certain financial reporting requirements. Micro-entities will be able to prepare and publish much reduced financial statements including an abridged balance sheet and profit and loss account.
“Whilst we applaud the intention behind this move, in reality it could mean that credit reference agencies have much less financial information on these companies, which may affect their ability to obtain additional finance such as loans or negotiate better rates with suppliers in the future," Head of SME business at Experian, Ade Potts, said.
"We would urge SMEs to ensure that they keep tabs on their credit record and ensure that these agencies have enough information to build a full picture of their financial situation.”
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