It seems obvious that paying your commitments on time will send positive signals to the credit reference agencies that maintain credit scores. However, it’s easy to forget this when cashflow is tight and you can choose to hold payments back for a week or two.
Protecting your credit score is just one reason why cashflow planning is so important to your business. When you plan ahead you can see when you’ll need cash to cover invoices and bills, and you can take the necessary steps to ensure cash is available.
Set up credit accounts with suppliers
Where you have a positive payment history with a supplier, ask them whether you can open a credit account with them. Then be sure to make your payments on time, every time. This will send positive signals to credit rating agencies which will feed into your business credit score.
Keep your business records up to date
The credit rate agencies draw their information from many sources, including data that’s publicly available. Be proactive in keeping your business data up to date, including listings on business directories and in particular, your document filings with Companies House.
If you’re late in filing your published accounts and tax returns, this will have a negative impact on your credit score.
Be careful about applying for credit too often
Your applications for loans, credit cards and other forms of business finance will be tracked by the credit reference agencies. While every approval will count in your favour, every refusal will do just the opposite.
If you’re filling in yet another online application in hope, rather than in confidence you’ll be approved, it may be worth speaking to someone who can give you some advice.
Get in touch with the credit reference agencies
If you think your credit score is adversely affected by old debts that have since been paid, or by a mistake, or even if you want guidance on how to improve your score, get in touch with one or more of the leading credit agencies.
They should be able to help with fixing errors or problems in your credit record, or give suggestions for improving your credit score.
We help businesses get the finance they need
Whatever your business credit score, we may be able to help you raise the funds your business is looking for. Our team has worked with many business owners who need to overcome a poor credit history.
We work with a panel of over 250 lenders, some of whom are open to helping businesses with weaker credit scores.
To explore your opportunities for raising money for your business, whatever your credit score, get in touch with us today.
As a founder of multiple businesses, Jamie believes that mindset, discipline and ambition are key drivers for success, both for his businesses and for his clients.
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Disclaimer: JD Capital Finance (Registered office -First Floor, Steeple House, Church Lane, Chelmsford, England, CM1 1NH, Registered Number 10128297) helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. JD Capital Finance can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness. JD Capital Finance may receive a commission or finder’s fee for effecting such introductions.