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Contract Limit- Further information

Company Watch Contract Limit is the recommended maximum value amount that a particular company can supply without causing a strain on the company’s existing resources.

The Contract Limit is calculated as a percentage of a blend of Sales and Total assets. Where the Sales number is not provided, this number is estimated using extrapolation of information provided in the Balance Sheet.

 

The Contract Limit takes into account:

  • the level of financial risk (including the H-Score® rating),
  • the age of the Company
  • Outstanding CCJs
  • The industry sector of the Company

The Contract Limit displayed on our platform is the lowest of the current company’s Contract Limit and the top UK consolidated parent company’s Contract Limit.


The Contract Limit for a given entity is typically much higher than the Credit Limit (which measures the recommended maximum credit that should be extended to a company). Maximum Contract Limit is capped at GBP 200m.

This KnowledgeBase article details on when the Contract Limit would not be calculated