Does your business have a good credit rating?

Does YOUR Business Have a Good Credit Rating?

June 17, 2025

BACKGROUND

When was the last time you checked your business credit score?

If your answer is “never” or “I’m not sure,” then you’re not alone—but you could be unwittingly storing up problems for the future!

Your business credit rating is more than just a number.

It’s a reflection of your company’s financial health and trustworthiness—and therefore it can significantly impact your ‘real world’ ability to obtain credit from your suppliers, obtain an overdraft or business loan from your bank or even impact your ability to get the opportunity to pitch for a tender . . .. .

What Is a Credit Rating for a business?

A credit rating (or credit score) for a business is a measure of your company’s ‘creditworthiness’. It’s based on your financial history, including how reliably you pay suppliers, how much debt you carry, and how long you’ve been in business.

Credit reference agencies like Experian, Equifax, and Creditsafe compile this data to generate a score.

The higher the score, the more financially stable your business appears to lenders and partners.

Why It Matters

A good business credit rating can help you:

  • Secure loans and credit lines and/or with better interest rates
  • Negotiate favourable credit limits and payment terms with suppliers
  • Get on Tender list/win contracts where a minimum credit score is required
  • Attract investors who want to see financial responsibility

On the flip side, where your business has a poor credit rating, then this can

  • Increase your operating costs i.e. higher interest rates, reduced options for energy suppliers,

or

  • Limit opportunities for growth i.e. inability to obtain business loans, smaller credit limits with suppliers or missing out on tender opportunities completely

How to Check Your Business Credit Score

You can check your business credit score through agencies like:

  • Experian Business Express
  • Equifax Business
  • Creditsafe
  • Graydon

Some services offer free reports or trial periods, while others charge a fee. It’s worth checking your score regularly to monitor changes and spot any errors.

Steps to ensure that your Business generates a GOOD Credit Rating

  • Pay suppliers and creditors on time
  • Keep your business debt to a reasonable level
  • Do NOT miss any repayments on any business debt
  • Submit your statutory accounts to Companies House on time each year
  • Continue trading i.e. longevity of trading can be beneficial

If you want to Improve our Credit Rating (or Credit Score)
If your score isn’t where you want it to be, don’t worry—there are steps you can take to improve it over time, including

  1. Pay bills on time – This is one of the biggest factors in your score.
  2. Reduce outstanding debt – Keep balances low relative to your credit limits.
  3. Avoid frequent credit applications – Too many can signal financial distress.
  4. Correct any errors – Dispute inaccuracies on your credit report.
  5. Build a credit history – use available credit tools responsibly in your business e.g. open and use company credit cards, use Supplier credit, obtain overdrafts or loans when appropriate

FINAL THOUGHTS
Your business credit rating is a powerful tool that can open doors—or close them. By understanding your score and taking steps to improve it, where appropriate you can ensure you are getting the best from it for your business!

We have partnerships that can assist you with both confirming what your Credit score is and also steps for quickly and consistently improving your credit rating. If you need some help with this topic then let us know.