Credit and Finance, Growth, Management, Hints and tips, Small Business
Going ‘Back To School’ With Business Credit Scores
Posted on by Tas
Estimated read time: 4 mins
September always brings with it that ‘back to school’ feeling, taking us back to the days when we laid out shiny new stationary in anticipation of a new school year.
Even without school to return to, the end of summer still feels like an opportunity for a fresh start, with many of us setting new professional targets for a productive and successful autumn and winter.
Although school days might feel like a distant memory, the time has never been better to get back to basics with your business credit scores. Here we explore how being clued up about your business finances could lead to an A* year for your company.
Going back to the drawing board
If you’re not sure how credit scores might be affecting your business, you’re not alone. In a recent Experian survey, almost a fifth of small business owners admitted that they felt they had an insufficient understanding of business credit scores.
But with two thirds of respondents in the same survey stating that improving profitability was their main goal for the year ahead, it’s clear to see the importance of understanding how business credit scores could help unlock opportunities for growth which might otherwise be restricted by limited capital.
Set your goals
Whether it was end of year exams or getting into university, every new school year came with a unique set of challenges that required plenty of forward planning to achieve top marks.
If your business has big goals for the months ahead, such as expansion, this might require applying for a financial boost in the form of business credit.
However, your plans could be derailed by issues such as a poor credit rating, which could result in your business being denied that all-important business loan to help get projects off the ground.
With tools such as Experian’s My Business Profile, you can see a full picture of what lenders, customers and other businesses see when deciding whether to offer you credit. Not just a credit score checking tool, Experian also offers advice as to what steps you can take to actively improve your business credit scores, so you can set a course for success.
Do your homework
Anyone who forgot to revise for an important test in their school days will know all too well the familiar saying, ‘fail to prepare and prepare to fail’. The same goes for knowing the credit scores of other businesses or suppliers before you enter into business with them.
With tools such as Experian Business Express, you can quickly take a look at the financial health of a business, including its credit history and payment performance, so that you can make well informed decisions about whether to work with them.
Many businesses have long-term suppliers and customers that may feel more like friends than business partners but when it comes to missed invoices, long-term customers might not let you know that they are experiencing financial difficulties until you are met with a sudden gap in cash flow. However, tools such as Experian Business Express allow you to monitor the credit status of businesses that you work with, sending you an alert if there are any changes to their credit score, helping to ensure continued peace of mind.
There’s no denying it, running your own business can be a tricky affair but it’s those businesses that take the time to get to know both their own and their customer’s credit scores, that’ll be the business high flyers this coming year.