Ways to Improve Your Small Business Credit Score

If you’re reading this sentence right now, give yourself an enthusiastic slap on the back because most people would see the words ‘business credit score’ and head straight for the hills.

We get it, credit can be a minefield of confusion, dread and general headaches you’d much rather avoid. Trust us, you aren’t alone if facing your small business credit report is just something you aren’t willing to tackle.

In fact, a ComRes survey carried out for Experian revealed that a whopping 59% of small firms had never checked their commercial credit. Even of those who had, a vast 56% of them hadn’t done so within the past 6 months.

So, it’s safe to say that small business credit is about as popular as you-know-what in a crowded lift.

That said, we would strongly encourage you to keep on scrolling through this article as we want to impart a few pearls of wisdom on how to get your small business credit score in great shape.

Whether you’re an existing business owner who seems to have landed themselves in a spot of credit-based bother, or an aspiring entrepreneur wanting to avoid that situation at all costs going forward, these are some good guidelines to work to…

Check your credit report on a regular basis

If you don’t check your credit report, you won’t be aware of any issues or mistakes that may be working against you. As tempting as it may be, turning a blind eye can have serious risks for your small business

Stay one step ahead so you can spot the warning signs and react promptly.

Set up credit accounts with suppliers

This may not be possible with all suppliers, especially if you are a particularly small business or a start-up without much experience under your belt.

That said, if you are able to set up credit accounts with any suppliers you work with regularly, this will help you rack up some positive payments against your name.

Keep debts to a minimum

We hate to state the obvious but keeping debts as low as possible and paying all outstanding bills on time is Good Credit 101. If you regularly fail to make pending payments, you will damage your credit profile but also flag up as a risk to potential lenders and investors further down the line.

Add trade references to your credit file

There will be some vendors or suppliers that choose not to share their payment data with credit agencies. However, you are able to add trade references to your company’s credit file via the agency which will stand you in great stead.

All of the above will help keep your credit profile in tip-top condition so that if you do come to apply for business finance of any kind, no alarm bells start ringing.

Staying on top of your business finances can be made a million times easier with the help of a qualified professional, especially when you’re an SME or start-up with very little time and resource.

Get in touch with our team of experts if you’d like to know more about how our accountancy services or cloud-based bookkeeping software, Pandle, can help you manage your business finance.


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Rachael Anderson

A creative content writer specialising across business, finance and software topics. I have a love for all things writing, and creating engaging, easy to understand content that helps everyday people!

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