Two Thirds of Businesses Don’t Check Their Credit Report
New research has found
Almost 60 per cent of financial decision makers at SMEs never check their commercial credit report which could be holding them back, a new survey has found.
Experian found that this is hurting businesses who are trying to access finance.
“Having control of your budget and understanding your personal credit history are great foundations for any new business, but a lot of people don’t realise that your credit score is also a great barometer for your overall financial health,” said Experian’s Ade Potts.
“Good credit lines can be vital lifeblood for SMEs, in particular, and one of the main advantages of knowing your Experian Credit Score is that you will see what lenders are likely to think of your personal creditworthiness. Lenders can take company directors’ personal credit histories into account when little information is available on a new business.”
“Each time you apply for credit, a hard search is recorded on your credit report. Multiple applications can damage your score and are visible to potential lenders, who may view these as a negative factor when assessing applications,” continued Potts.
“Experian account leaves a soft search which lenders cannot see. So, searching and comparing credit products doesn’t affect your creditworthiness in any way.”