Having a good business credit score can be a real benefit to your business. It can help you to get a low interest rate on your borrowing and could make you more favourable with suppliers. In this blog article, our team have listed their 5 top tips for improving your credit score.
1. Find out your current credit score
The first action in improving your credit score is to find out your current credit score. You can obtain a copy of your report from a credit reference agency such as Experian, Equifax or Creditsafe. 100 is the best business credit score, whilst 75 is regarded as being very good.
2. Check for errors
To improve your score you should check that all the information is correct and if you find errors have them corrected by contacting the lenders and explaining why you dispute the information. If the creditor won’t take action, contact the Credit Reference Agencies, sending a written account of the dispute and relevant documents or receipts.
3. Time for a clean slate?
Look for any old negative information that should be removed. Most information should stay on your file only up to seven years, any older and the Credit Reference Agency may be able to remove it.
4. Are you requesting positive information?
If you pay your suppliers promptly, another way of improving your credit score is to ask them to report positive information to the Credit Agencies. The more positive reports the better your rating is likely to be.
5. Other areas to consider…
Other ways to improve your credit score include filing your annual accounts on time, having a phone landline listed for your business, always paying bills on time and settling any County Court Judgements, as they shouldn’t be on your record if paid within 28 days. Also consider building up your borrowing history. Without a history of managing credit, lenders find it difficult to assess how much of a risk your business will be. Taking out a business loan and using it responsibly may help you appear less risk.
We are able to source finance for businesses with varying levels of credit score, so speak with our team to find out how we can help you.
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This article has been produced by The Funding Store for general interest. No responsibility for loss occasioned to any person acting or refraining from action as a result of the information contained in this article is accepted by The Funding Store (MK) Limited. In all cases appropriate professional advice should be sought before making a decision.