Everybody knows that having a good credit score can make it easier to get a good mortgage or credit card deal. But the role of a business credit score is less well understood.
Lenders, creditors, and other businesses may use your credit score to assess your ability to pay bills on time. It is often one of the biggest factors that will determine whether your business can access loans and other types of credit.
Tom Fox, Licensed Insolvency Practitioner at Umbrella.UK Insolvency, said: “When a business experiences financial trouble, their score can start to decline, making it harder to access the kind of funding that could put them back on the road to recovery.
“That’s why it pays to try and protect your business credit score – in bad times as well as good.”
One of the first things a lender will look at when assessing your credit file is whether you have any CCJs. They could also check ownership details, company accounts, past finance applications and your existing credit.
If you don’t have a borrowing history, you might find it more difficult to get credit because lenders use these records to assess a business’s ability to meet lending terms.
Tips to boost your business credit score
For more information about your business’s credit score or to learn more about Umbrella.UK company insolvency services, speak to a member of the team today. Call: 0800 611 8888.