Finding that a prospective business has a CCJ will pose a number of questions, depending on the sector you’re in.
For example, if you’re an SME or work in the sales space, a CCJ may affect your decision to do business with that company. Will they pay you on time (or at all)? And are they therefore a reliable, long-term, repeatable customer?
Meanwhile, a CCJ may also represent a compliance risk. So, when a company encounters a prospect with a County Court Judgment (CCJ), it sometimes triggers enhanced due diligence checks as part of AML (Anti-Money Laundering) and KYC (Know Your Customer) regulatory compliance protocols.
This is because a CCJ increases the risk profile of the prospect, necessitating a deeper investigation into their financial history and the specifics of the judgement.
This is particularly pertinent in public services and higher education. There is concerted pressure both from government and social & governance perspectives to work with more ethical companies (and to avoid relationships with problematic businesses).
In short, this involves asking yourself whether working with that company will reflect well on your own organisation or institution. In-depth due diligence checks are key in order to avoid these risks of reputational damage.