On the 12th March 2014 changes to the Privacy laws took effect.
What implications does this have for businesses and individuals ? It has a wide range of effects.
Consider these business practices:
- Do you normally stretch your payments to your suppliers past their due date?
- Do you stretch your payments so that you can manage your cashflow?
These past practices will have now a serious impact on your credit history and consequentially your borrowing capacity as a result of the changes to credit reporting.
But it’s not all doom and gloom – rather than just focusing on the negative, the new credit reporting also reports on those payments you have made on time, to give a more balanced picture of your credit history
However this is some food for thought and will have all of us examining how we manage our cashflow to ensure that we don’t fall foul of these new reporting laws
For further information here are a few sites that will tell you more about the changes