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What Is Economic and Financial Standing?
This is a UK procurement term. A check on whether a supplier is financially sound enough for the contract, judged on measures such as turnover or accounts.
How is economic and financial standing assessed?
Through measures such as turnover, financial ratios, credit checks or accounts, as long as they are proportionate to the contract.
Can a buyer insist on audited accounts?
Not from suppliers that are not legally required to have audited accounts. Buyers must accept other evidence.
What if a supplier does not meet the requirement?
It may be able to rely on a parent company or associated person, sometimes backed by a guarantee.
