Shropshire businesses have been urged to boost their credit score in order to improve their performance.
DY’s Business Advisory Senior, Cian Iddison, said: “Your business credit score is just as important as your personal credit score.
“It reflects how effectively your business manages its finances and it can significantly impact your financial opportunities, supplier relationships and the overall trustworthiness of your company as seen by other businesses.”
Cian said there were several steps that business owners could take to improve their company’s credit score.
“First you should establish a credit history – that’s a great first step. You could do this by applying for a business credit card or a small business loan. But you must manage these credit options responsibly by making regular payments and using credit responsibly.
“A sensible use of credit will, over time, contribute to a positive credit history that will make it easier to access larger financing options in the future.”
Cian said businesses should also ensure they pay bills on time as consistently meeting payment deadlines shows your business is reliable and financially responsible.
“Fostering strong and trustworthy relationships with suppliers and lenders is not only good for business but also for your credit score. Open communication, meeting financial obligations and being reliable can bring positive references from suppliers, which again will boost your score.
“You must also monitor your business credit profile to catch any errors, inaccuracies or suspicious activity that could harm your credit score.”
Cian urged businesses to avoid taking out too many loan applications at once as each application triggers a credit check.
Too many credit checks in a short period of time can have a negative impact on your score, so it’s important to seek professional advice on how you can access funding without the need for excessive applications.”
Cian said monitoring the credit scores of businesses you work with including suppliers, customers, new and existing partners can also help protect your business credit score.
If you’re in any doubt about your score, we can help you access the Credit Review Service thanks to our partnership with Capitalise. This service gives you the opportunity to give more information to Experian – and in 96% of cases it leads to a credit score and credit limit improvement.”
Cian Iddison, Business Advisory Senior
