IT PAYS TO KNOW BUSINESS CREDIT SCORE

Your business credit report and score are as vital as your personal credit history for getting loans and credit, services and products.

A negative one could put some firms off doing business with you.

Keeping an eye on your business credit report and knowing what you can do to improve it are key to keeping your firm’s finances in the very best shape.

We know it’s just another job on the endless list but it’s one you need to do. To help you we’ve teamed up with the experts at credit information service Experian for their seven steps to improve your business credit score:

1 Your business credit report can help you to understand the positive and negative factors in your history, and plan the best path for progress. Get access to it via Experian, Equifax and Creditsafe.

2 Make a note of your suppliers’ payment terms – and plan payments so they are on time. Poor payment performance can indicate a business struggling to service debts. 3

File annual returns and financial accounts on time. Making more information on your business available helps suppliers, utility providers and lenders make decisions when it comes to offering you products, services and finance.

4 Avoid County Court judgments. Should one occur, settle it promptly.

5 Keep an eye on your personal finances. Directors’ personal credit scores can be taken into account for start-ups when little information is available on the business itself.

6 Taking on a director with a strong history of running firms and a good credit score can help to boost your company’s standing.

7 Monitor the credit status of companies you work with, so you can anticipate any problems before they affect your business.