Companies have credit scores just like people do. Credit reference agencies calculate business credit ratings based on how your company handles its finances, including credit cards, loans, and even how reliable you are at paying your bills and suppliers.
The main reason to take an interest in your company’s credit score is so you know where you stand when applying for credit. The better your score, the easier (and cheaper) it could be to get credit when you need it.
Your rating is important for other reasons, too. Large companies and public bodies might check your credit history when you pitch for a contract with them, and suppliers might take a peek when figuring out their trade terms and business contracts with you.
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Credit reference agencies (CRAs) are the gatekeepers of personal and business credit scores. They come up with a score from 0 to 100 based on:
Only the eggheads working at CRAs know all the ins and outs of how your business credit score is calculated. You have to jump through a couple of hoops to see your credit score—for example, if you want to find out what your small business credit rating is with Experian, you’ll need to pay around £25 per month for access, or sign up for a free 30-day trial.
For a detailed company credit check, it’s best to turn to the companies that create credit ratings, such as Experian. But if you aren’t in the mood to get out your credit card and would prefer a fast, free overview of your company’s financial health, our no-strings tool could be perfect for you.
Our credit analysts got together to come up with 10 questions that address the key areas of how your company’s finances are getting along. The tool is completely separate from iwoca’s credit review process, so you don’t need to worry about it affecting your chances of approval with us.
Think of this tool as a warm-up you can do before checking your credit rating in full and applying for a small business loan. It gives you a rundown of the financial factors CRAs and lenders care about when deciding if you qualify for a small business loan, plus tips on how to get the best credit terms when planning an expansion or creating a buffer for your cash flow.
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