Much like you have a personal credit score, your business also has its own credit score. This score reflects how reliable your business is when it comes to managing finances. A good credit score for your business can open doors to financial opportunities, better deals with suppliers, and make your business look more trustworthy.
Here are some straightforward steps you can take to build a good business credit score and set your business up for success:
Pay your bills on time
Paying your bills, including those from suppliers, lenders, and utility companies, on time is crucial for a good credit score. Consistently meeting payment deadlines shows that your business is reliable and financially responsible.
Keep an eye on your credit profile
Regularly check your business credit profile for errors, inaccuracies, or any suspicious activity that could harm your credit score. We can provide you with your business credit profile, just reach out to find out more.
Build a credit history
Building a solid credit history for your business is important. Start by applying for a business credit card or a small business loan. Use these credit options responsibly by making timely payments and keeping your credit usage low. Over time, this responsible credit usage will help build a positive credit history, making it easier to access larger financing options.
Build rood relationships with suppliers and lenders
Establish strong and trustworthy relationships with your suppliers and lenders. Communicate openly, meet your financial obligations, and show that you can be relied upon. This can result in positive references from your suppliers, which can boost your business credit score.
Be cautious with loan applications
Every time you apply for a business loan, it can lead to a credit check that affects your credit score. Avoid applying for too many loans, as this can lower your business credit score. If you need a loan, you can speak to your point of contact at UHY who can help you access funding right for your business, without unnecessary applications and credit checks.
Credit check your business partners
Monitor the credit scores of the companies you work with, such as suppliers, customers, and partners. This helps you identify if any of them are facing financial difficulties. Being aware of risks in your supply chain can protect your business and keep your credit score intact. You can check company credit scores using Capitalise for Business.
Following these steps will help you build a good business credit score. If you find that your score needs improvement, we can help. Due to our relationship with Capitalise, we can provide additional information to Experian, the credit bureau used by 90% of lenders and suppliers. In 96% of cases, this results in an improvement. If you’d like to find out more about how we could help with your business credit score, just get in touch or reach out to your usual UHY adviser.
