Have you given your credit score any TLC lately?
Posted on by Katie Hook
Estimated read time: 4 mins
As an SME, it can be difficult to get that initial momentum you need to succeed when you’re just starting out or once you’re most established, to push forward with a new project or development that might take your business to the next level. Often, in order to get this momentum, you need some initial financial input. With that, you can put the plans in place which will create the growth and success you’re looking for.
Easy-peasy right? Your friendly bank manager should be able to help – UNLESS your credit score is letting you down. Last year 324,000 small and medium businesses sought a loan or overdraft. A surprising 26% of these were declined.1
So what can you do to ensure that you secure the financial investment you need to take your business forward?
Knowing the score
A poor business credit score is a big factor that can lead to rejection, so you can save yourself a lot of hassle by managing this well. It’s calculated using a variety of information such as your business credit and repayment history, your business size and time in operation. It allows lenders to lower their own risk of lending to a business who may be unlikely to pay them back. It also allows them to offer better rates to those who appear more reliable. So it really does pay (pardon the pun) to make sure that your company score is top notch before you go looking for your next loan or credit card.
How to maintain a healthy credit score
So you see how helpful it can be to stay on top of your score – but how do you actually do it?
Simply by managing your credit accounts well. Make sure your payments are made on time, try not to borrow beyond your means and of course, check your business report and score regularly so there aren’t any nasty surprises such as incorrect or fraudulent information recorded. If you do find these things, then you don’t have to deal with them alone. Services like Experian’s My Business Profile offer access to all your business report and score details along with the help and support you need to understand the information and investigate or correct anything that doesn’t look quite right.
Don’t be a statistic…
If you were surprised to learn that 26% of SMEs were declined credit last year, you may be more shocked to know that two thirds of SMEs haven’t checked their credit score.2 If you want to give yourself the best chance of avoiding that first statistic, then it just makes sense to avoid the second one too, right?
Give your business the love it deserves and start giving your credit score a little more TLC…
Unlock your financial potential today with My Business Profile and let Experian for Small Business help you get ahead in 2017.