10 Steps to improve your business credit score

Credit scoring is vital to the growth of any business – from winning new contracts, to securing additional borrowing, to getting better deals from suppliers. And there is no time like the present to check your own business’s rating and take these ten simple steps to improve it, if required:

  1. Find out your business credit score by subscribing to view your business credit report
  2. Make a concerted effort to pay all invoices on time, a worsening payment trend is a key indicator of a deteriorating cash position
  3. File annual returns and financial accounts on time. Late filing can be a sign of financial distress
  4. Avoid County Court Judgments where possible. If one does occur, ensure it is settled within the month
  5. If you own a start-up business, keep an eye on your own personal finances.  In cases where the financial data of a business is scarce, consumer data is a valuable indicator of the company’s commercial integrity
  6. Register your business with a credit reference agency or a directory. Make sure there is enough information about your business available, because if it falls below the radar then you could struggle for credit and other services
  7. Consider taking on a partner with a good history of running businesses and a good credit score. This can not only boost your credit rating, but increases the chances of your business being successful
  8. If you change from being non-limited to limited, you need to manage the information held about you, or you may find yourself listed as a start-up
  9. Take time out every so often to check out the credit position of your suppliers to ensure that you won’t be left in the lurch should one of them go bust
  10. Don’t take a laissez-faire approach, frequently check your business credit score to avoid any painful surprise

Leave a Reply

Entering your personally identifiable information is optional. Your email will never be published.

Leave a Reply

Entering your personally identifiable information is optional. Your email will never be published.

Posted on by Kagiso Mangoale

Estimated read time: 2 mins

Sign Up to Business Tips

Sign up today to Business Tips and News