5 top tips to ensure you keep a healthy business credit score
During a recent survey Experian business assist revealed that 63% of businesses knew their credit score and used it to keep an eye on how they are performing. Knowing your score is one thing understanding what the score means is the added benefit.
Experian have produced an infographic which helps with the understanding.
Here are our top tips:
- Pay any bills due on time
Might seem like an obvious one! But paying bills and invoices on time shows creditors that you have a health cash flow.
- File and documents to companies house by their deadline
In respect to documents for companies house filing late could have a negative effect on your credit score so always know your deadline.
- Avoid an CCJ (county Court Judgements)
These do have an instant negative affect on your business, if you get to the point where you cannot bay a bill communication is key to ensuring your creditors don’t go down this line.
Keeping people informed can often be enough to deter them from feeling this is the only route possible.
If a County Court Claim does slip though the net in error and you end up with a County Court Judgment ‘by default’, as long as payment is due anyway, pay within 30 days of the judgment and it can be immediately removed from your record.
- File your full accounts
Full accounts provide a more detailed and accurate picture of your business. The more information available to feed into the calculation for your business the better.
Also try to file at least a month early as some credit scoring agencies reduce your recommended rating around a month before the final deadline to file your accounts.
- Regularly Monitor your credit score
We offer a free credit score facility which will enable you to get your credit score and see which position your business is in.
As well as the free credit score facility we can also help you with your monthly cash flow. We have numerous tools available as well as a support service, get in touch today and we can see how we can help.
