Credit and Finance, Growth
5 top tips for a healthy business credit score
It seems that businesses are beginning to see the benefits of knowing their own business credit score, with a recent Experian Business Assist survey revealing that 63% of participants knew theirs1.
Being aware of your business credit score has lots of benefits, but knowing and understanding are often two very different things…
Having an understanding of the factors that can influence your business credit score can be invaluable for improving a score or even maintaining one.
Pay your business bills on time
This may seem like an obvious one, but paying your business bills on time can only have a positive effect on your business credit score.
Making payments on time is an indication to creditors that your business has a healthy cash flow.
File any documents to Companies House on time
Filing documents to Companies House on time may not necessarily improve your business credit score, however filing them late could have negative effect.
Avoid receiving County Court Judgments against your business
Receiving a County Court Judgment (CCJ) against your business will have a negative impact on your business credit score.
Try to avoid receiving CCJs at all costs and, if you do happen to have one filed against your business, be sure to stick to deadlines and pay in full where possible.
File full accounts rather than abbreviated accounts
The more information available about your business, the more accurate your business credit score will be.
Therefore, by filing full accounts at Companies House rather than abbreviated accounts – more information is available to feed into the calculation of your business credit score.
Regularly monitor your business credit score
Using tools such as Experian My Business Profile to regularly monitor your business credit score, will help you to keep an eye on the factors causing your score to go up or down.
Meaning you can take steps to improve it where necessary, and make sure it’s always as good as it can be.
If you’d like to learn more about the information that could impact your business credit score, take a look at our infographic today.
My Business Profile. Free to try. Easy to use. Invaluable always.
Source: 1. Experian survey was conducted between December 2017 and January 2018. In total, 115 small and medium sized businesses took part in the survey.