It is common for companies, when they have a legitimate need, to perform credit checks on their customers. This may occur in connection with loan applications, subscriptions, or online purchases paid by invoice.
Regardless of the reason for the credit check, individuals have the right to receive a notification letter containing information about which company requested the check and what information was disclosed.
Following a legislative change effective July 1, 2022, sole proprietorships (ENK) are treated the same as natural persons.
Previously, there was a distinction between sole proprietorships registered in the Register of Business Enterprises and those that were not. This distinction no longer applies, and all sole proprietorships are now treated as individuals.
As a result of this legal change, all sole proprietorships are granted the same rights as individuals, including the right to access information.
This also introduces an obligation to send a notification letter when a sole proprietorship is subject to a credit assessment. The legislative change also affects which data sources may be used and what information can be registered in credit assessments.
When calculating a credit rating or credit score for legal entities (companies), only information about the legal entity itself may be used.
However, information about individuals in key positions within the company may be used as a basis for the credit assessment until the first financial statements are available.
For newly established companies without available financial statements, credit assessments may therefore be based on key individuals behind the company, such as the chair of the board or the CEO. In such cases, a notification letter will be generated.
Want to learn more?
If you’re wondering how your business can start using credit assessments today, contact us at hei@bislab.no for more information on how we can help.
