Before taking the plunge with a future partner or customer, it's always a good idea to check their solvency. What information about a company is publicly available? Here's how.
Why check a company's creditworthiness?
Solvency expresses a company's ability to repay its debts in full. It is measured by several ratios, including :
- the financial autonomy ratio,
- repayment capacity,
- the current ratio,
- debt coverage ratio.
When signing a contract with a new prospect or supplier, it's a good idea to check the company's solvency and cash flow. In the case of a new customer relationship, this will help toavoid late payments and involuntary bankruptcy. In the case of a supplier relationship, you need to assess the supplier's ability to deliver the service ordered.
Find out about the company's legal status
Before checking a company's solvency, it's a good idea to find out about its legal status. There are several sites where you can obtain this information.
Sirene
The Avis de situation Sirene platform and the Sirene database provide access to official information on the situation of companies. These include company registrations, deregistrations and modifications.
Infogreffe
The Infogreffe website lets you consult a company's status, deeds and key figures free of charge.
The National Trades Directory
Registration and deregistration dates for craft businesses registered with the Répertoire des métiers can be viewed on the public register of craft businesses RNM: répertoire national des métiers.
Company directory
Data from the Sirene platform, the Registre national du commerce et des sociétés (RNCS) and the Répertoire national des métiers (RM) are grouped together in the L'Annuaire des Entreprises platform.
Where can I find financial information about a company?
To obtain financial information on a company or check its solvency, you can consult the Commercial Court, as most commercial companies are required to file their annual accounts with the Registrar's Office every year.
Several elements are available free of charge on the Infogreffe website:
- sales generated,
- the income statement,
- statement of assets and liabilities.
Access to the debt situation or the existence of collective proceedings is subject to a charge.
You may also wish to contact a business intelligence agency to assess the creditworthiness of the company in question and anticipate any short- or medium-term defaults.
Finally, if you maintain good relations with your customers and suppliers, it may be a good idea totalk to your professional network about a company you don't know much about. If a company is in dispute with one of the members of this network, chances are you'll be informed quickly.