Most people understand the importance of their personal credit score. But fewer business owners recognise how their business credit score can directly impact their access to financing, contracts, and growth opportunities.
While over 90% of UK start ups survive their first year, fewer than 40% make it to their fifth birthday. One of the biggest hurdles is limited access to financing. But a strong business credit score can help bridge that gap, opening doors to better terms and more opportunities.
So, if you’re applying for a business loan or simply want to improve your financial health, you’ll want to look at your business credit score.
In this article, we’ll explain how business credit scores work, how to check your score, how to use those insights to improve your score, and much more.
In a nutshell: Knowing your business credit score can help secure better financing, build trust with suppliers, and unlock growth opportunities. Credit reference agencies (CRAs) calculate your score, typically rating your business’s creditworthiness from 1 (high risk) to 100 (low risk). You can check your business credit score, often for free, by requesting a report directly from a CRA or using a credit-checking service. If your score’s on the lower side, you can try improving it by paying bills on time, reducing outstanding debt, and making sure your business’s details are up to date with Companies House.
What is a business credit score?
A business credit score is a measurement that shows how financially trustworthy (or ‘creditworthy’) your business is. Lenders, suppliers and other businesses can use it to decide whether to work with you or lend you money.
Unlike a personal credit score, which looks at your own finances, a business credit score looks at whether your business is able to pay bills and debt.
A higher score means your business is seen as low risk, making it easier to get loans and better payment terms. But a weak score can make it harder to access credit or result in being offered higher interest rates. For example, a score of 80 would indicate to a lender that offering your business credit is fairly low risk.
How do business credit scores work?
Business credit scores in the UK are generated by Credit Reference Agencies (CRAs) – also called credit bureaus. They’re then reported to lenders, suppliers and others who may request your score.
A business credit score is usually within a range from 0 to 100. The higher the score is, the better a company’s performance and creditworthiness, which indicates low risk to potential lenders. However, the closer a business’s credit score is to 0, the higher the risk and less likely they are to be offered credit.
CRAs take into account several things to calculate your credit score, such as:
Size and age of your business
Your industry
Business location
Past repayment history if your business has borrowed before
Amount of existing credit available to your company
Number of past applications for finance (and whether you were successful or denied)
Trade credits you may have secured
Existing company accounts
Details of ownership
Outstanding County Court Judgements, if any
So, if you’ve been clearing your balances on time and keeping your credit utilisation ratio in check, and your suppliers have reported your good credit behaviour, there’s a higher chance that your business will be deemed creditworthy and acceptable for a loan.
Each business credit reference agency uses a slightly different method to measure and rank your creditworthiness, so it’s worth checking your business credit report and score from multiple agencies to get a comprehensive view of your creditworthiness.
Top tip: A good business credit score doesn’t happen overnight. So focus on building a consistent track record of responsible financial behaviour, such as paying bills on time and managing debt carefully.
Why is a business credit score important?
A good business credit score suggests to lenders that you’re reliable, making it easier to secure credit at better interest rates. In contrast, a poor score (often caused by missed payments or rejected credit applications) can limit your options and lead to higher costs.
Since business credit scores are public information, a low score could also make your business look risky to potential partners.
Over the lifetime of your business, keeping a good business credit score can help you access the best lines of credit, insurance options, low-interest business loans, and other valuable financial resources.
Top tip: A line of credit, while a good option, isn’t the only way to fund your small business. Learn more about securing both debt finance and equity finance, and discover 10 ways to fund your small business 🌱
Why should you monitor your business credit score?
Regularly monitoring your business credit score can help you make smarter financial decisions that improve or maintain your rating.
Various activities can affect your score, like transaction volume or outstanding balances. So staying updated helps keep you in control.
A few reasons to monitor your business credit score:
Check the financial health of potential partners before committing to any agreements
Scores often change and tracking them helps you secure better rates and manage cash flow more effectively
Inaccuracies or fraudulent activity can damage your score if not caught and corrected quickly
Many reports include actionable tips to help you improve your rating over time
Top tip: With Tide Business Loans, you can easily compare tailored financing options from over 80 lenders, borrowing anywhere from £1,000 to £20 million. And you can check your eligibility without affecting your credit score. By selecting a pre-qualified offer and repaying on time, you not only access the money you need but also boost your business credit score. It’s a simple, smart way to grow your business 💡
What affects a business credit score?
Each CRA has different criteria they look at when determining your score. There’s no universal standard for business credit scores in the UK, but there are some common factors that reflect the financial health of your business.
A CRA may take any of the following into consideration:
Payment history: Most will look at whether you pay your bills on time. This history includes standard utility bills, but also things like invoices to vendors and your loan repayment history. Prompt payment shows loan providers and investors you’re a good bet.
Public records: County court judgements (CCJs) or insolvency proceedings against your company can have a negative impact on your score. To keep this from happening, resolve any payment disputes quickly, review credit terms before borrowing, and build a habit of timely repayment.
Number of credit applications: Too many applications over a short time may indicate that you’re having trouble securing funding for your business. Some CRAs consider these applications as they review your financial history, so be judicious about when you apply.
Filing business accounts on time: At the end of every financial year all companies must file their accounts with Companies House. Doing so in full and on time may boost your score with certain agencies, so it pays to be thorough.
How to check your business credit score
Checking your business credit score will help you understand your financial health and improve your access to funding.
1. Choose a credit report provider
To check your business credit score, you’ll need a report from a credit reference agency (CRA). You have several options here (eg Experian, Equifax, Creditsafe, Credit Passport, and Dun & Bradstreet) and each offers different features, pricing, and levels of detail.
For a seamless, integrated experience, consider using Tide’s Business Credit Score Insights*. It provides real-time access to your score, clear explanations of what impacts it, and actionable tips to improve your business’s financial health.
Unlike agency reports, we’ve designed Credit Score Insights specifically for small businesses and have integrated it directly with your Tide account to make it easier to monitor your score alongside your everyday banking.
2. View your score
Depending on the provider you choose, you may receive your credit report in the post or by email, or they may give you access to your score through an online account.
Your score is usually presented as a number and accompanied by a risk rating (eg low, medium, or high).
With Tide: Your score is displayed clearly in your dashboard, alongside a summary of your business’s creditworthiness.
With other CRAs: Scores may vary slightly between agencies, as each uses its own scoring model.
3. Check what’s impacting your score
In order to improve your score, you’ll need to understand what affects it.
Factors that impact your score include:
Payment history (eg late or missed payments)
Credit utilisation (how much of your available credit you’re using)
Public records (eg County Court Judgments or insolvency notices)
Business demographics (eg company age, size, and industry)
4. Set up monitoring
Your credit score isn’t static. It changes as your business grows. To stay on top of it, most providers allow you to monitor your score over time. This helps you spot and address potential issues early.
With Tide’s Credit Score Insights, you can set up automatic alerts if your score changes.
How to access a business credit report for free
You can access your business credit score from many providers for free. But some credit scoring companies charge a fee for their report breakdowns or for monitoring credit scores over time.
Each agency provides options for how to review your business credit report and how much it will cost. Some agencies charge a monthly fee, while others will provide a one-time report. In most cases, it’s possible to pay once to gain access to your credit report for six months or a year.
How can I use my business credit report?
A business credit report is a powerful tool that helps you understand your company’s financial standing and reputation. It also helps you see how lenders, suppliers, and partners view your business.
You can use a business credit report to:
Negotiate better terms: A strong credit score can help you secure better interest rates or more flexible payment terms with lenders and suppliers
Build credibility: Share your report with potential clients to demonstrate reliability and trustworthiness
Spot areas for improvement: Identify factors affecting your score, such as late payments or high credit usage, and take action to strengthen your financial profile
Benchmark against competitors: Some reports include industry comparisons, which can help you compare your performance and address weaknesses
What’s inside a business credit report?
A business credit report offers important information about your business and those you do business with.
A typical business credit report includes these items:
Business background information
Business financial information
Business credit score and potential risk factors
Summary of banking, trade, and collection history
Summary of liens, judgements, and bankruptcies
The exact information included in your business credit report will depend on which credit reporting agency you use. With the report, you can check your company’s financial health at a glance and get a clear idea of how financial institutions and other businesses perceive you.
What should I do if I find errors in my business credit report?
Spotting errors in your business credit report, such as incorrect financial details or outdated information, can be frustrating. Even seemingly small mistakes, like a wrong address or outdated ownership details, can impact your chances of securing finance. But you don’t have to accept them.
Here’s what to do if you find an error:
Gather evidence: Collect documents (eg business registration, bank statements, contracts, tax returns) that prove the error
Identify the credit reference agencies (CRAs): Check reports from each CRA to see where the error appears
Submit a dispute: Report the error to the CRA (eg Experian or Equifax), providing clear details and supporting documents
Contact the source: If the error originates from a lender or supplier, ask them to update their records and notify the CRAs
Follow up: CRAs usually have 30-45 days to investigate, so chase them if there’s no resolution by that time
Monitor your report: Check for updates and consider setting up credit monitoring
Keep records: Save all correspondence in case you need to escalate later
Escalate if needed: Seek legal advice or file a complaint with the Information Commissioner’s Office if the error involves the misuse of your data
Top tip: To help ensure your business is always seen in the best possible light by lenders and partners, review your business credit report regularly to catch and correct errors early.
What is a good credit score for a business?
Typically, a score in the top 20% of the range is considered a ‘good’ business credit score. But the range itself differs depending on the CRA calculating and reporting it.
Here are the business credit reporting scales from three of the top UK CRAs:
What is a good Experian score?
Experian’s business credit score ranges from 1-100, where anything above 80 is considered a good score (or low risk).
Here’s a breakdown of Experian’s business credit scores and risk descriptions:
Source: https://www.experian.co.uk/blogs/latest-thinking/small-business/what-is-business-credit-score/
What is a good Creditsafe score?
Creditsafe’s business credit score also ranges from 1-100. A ‘good’ Creditsafe score is generally anything that puts you in the low‑risk bands (51-100):
1-20: Very high risk
21-29: High risk
30-50: Moderate risk
51-70: Low risk
71-100: Very low risk
If you’re in a low-risk band, Creditsafe predicts that your likelihood of insolvency within 12 months is low.
What is a good Dun & Bradstreet score?
Dun & Bradstreet (D&B) offers several different types of business credit scoring to answer the different questions lenders have around a company’s financial reliability and stability.
Lenders, prospective partners, and suppliers may request any of these scores to assess whether to do business with your company.
For example, D&B’s Risk Assessment includes four ratings to help evaluate whether a company is likely to go into bankruptcy, become inactive, cease operations and more:
D&B Viability Rating
D&B Failure Score
D&B Delinquency Predictor Score
D&B PAYDEX
How to improve your business credit score
There isn’t a simple or singular way to quickly improve your credit score. It’s better to make a plan for long-term diligence around your finances. By collecting robust information, following financial management best practices and regular monitoring, you can begin to build your credit score.
Although these things take time, it’s not difficult to do. It’s important to build these habits into your normal finance routines and systems so that they become a regular part of how you operate. Over time, you’ll see your credit score begin to rise.
To help you get started, here are 14 practical steps you can take to improve your business credit score:
Sign up for alerts that notify you when your company’s credit record changes or is searched. When a problem arises, get the support you need to address the issue(s) right away.
Monitor the scores of customers, suppliers and vendors as your business credit score can be impacted by theirs. This will ensure your credit record won’t be impacted by their actions. Learn how to run a credit check on another business in our guide.
Check your credit rating score at regular intervals (such as each month or quarter) to be aware of any changes that could affect your status.
Take care of your cash flow. If you run out of money and miss payment deadlines, your credit score may decrease. Consider how you can change your invoice payment terms and look at how online accounting tools can help you stay on top of your accounts receivable. You could also consider setting restrictions around when to spend money and how low you’ll allow your accounts to get. Work with your accountant or financial advisor to determine what would work best for your business.
Ask your business partners and suppliers to share data on your payment history with CRAs to help improve your score. The more timely payments you can show, the better.
Pay on time or early when possible. Your agreed payment terms are a form of credit, so failure to pay on time can damage your credit rating. Consistently paying bills on time will help improve your credit score and will indicate to creditors that your business has a healthy cash flow.
Consider a business credit card. A business credit card can be pivotal to small businesses trying to get off the ground. They also come with travel and expense management rewards. If you can forecast a reliable cash flow, paying credit card bills on time is a great way to improve your credit score.
Keep an eye on your credit utilisation ratio. Although it seems counterintuitive, lenders like to see that you use your line of credit and that you do so responsibly. The general rule is to use less than 30% of your total credit available.
Carefully manage your personal finances. When you are just starting out or have a small enterprise, your personal financial data may be used in place of your company’s financial data.
Avoid County Court Judgements wherever possible and pay them on time should they occur.
File your company accounts before the deadline. Late filing can accidentally indicate financial problems. Learn how to file your company tax return.
Start small with short-term, low-level borrowing you know you can pay right away. For example, you can pay for office furniture in instalments or organise to pay the monthly office supply order on credit. By consistently repaying debt in full and on time, you can begin to build a pattern of behaviour that credit agencies will see as an indication of likely future borrowing behaviour.
Keep your business information updated. Inform your customers, suppliers and CRAs of any changes to your business location or status.
Restrict the number of credit applications you make at a time. Too many applications in a short period may lead to credit searches being conducted on your business, which are then recorded on your credit record. This can make it appear like you are struggling to secure funding.
Based on your business, you can pick and choose a few of these tips to prioritise in the short-term and in the long-term, make progress on each of these points. Over time, you’ll begin to see your business credit score shift for the better.
Top tip: A great place to start managing cash flow is within your employee expenses. By creating clear rules and guidelines, you can lower your cash burn, avoid tax season surprises and effectively monitor your cash flow. To learn more, read our in-depth guide on how to manage employee expenses 🌟
Is my business credit score different from my personal credit score?
Personal credit scores and business credit scores are different. Where a personal credit score only details loans and their credit accounts, the business credit score goes into the finances, subsidiaries, ownership information, risk scores and everything else that’s relevant for evaluating a company’s financial health.
There are three key differences to be aware of:
Ease of access: You’re guaranteed free access to your personal credit score. However, to access your business credit score, you’ll have to pay a reporting or processing fee through a credit reference agency.
Level of privacy: Your personal credit score is private, but your business credit score isn’t. Business partners, vendors, credit providers or stakeholders may choose to review and evaluate your credit score before deciding to work with you.
Score variation: Your personal credit score is calculated using standardised algorithms, which means it’ll be roughly the same no matter which credit bureau you use. However, your business credit score will fluctuate between different reporting agencies because there’s no standardised system in place for calculating company credit scores.
When your business is new and doesn’t have an established credit history, lenders may investigate your personal credit score to see if you’re creditworthy.
It’s good practice to keep your business transactions separate from personal finances. Having a separate business bank account and business credit card for company use can help mitigate issues when applying for business financing.
How your personal credit score can impact your business credit score
Your personal and business credit scores are usually considered separate so shouldn’t influence each other. But new businesses often don’t have a meaningful record of loans and repayments, so lenders will likely use your personal credit score to make an informed decision.
How much your personal credit influences your business credit is connected to the type of business you own.
Sole traders: Your personal and business credit are treated as one
Partnerships: Lenders check both your and your partners’ personal credit
Limited companies: While the business has its own score, lenders may still review directors’ personal credit
Top tip: Still in the early stages of growing your business? Choosing between being a limited company or sole trader can have big implications later on. If you’re not sure which direction to take, read our guide on what to consider before you choose between limited company or sole trader💡
Expert business credit score insights
With over 40 years experience of credit management, Philip King is passionate about cash flow and supporting small businesses.
Previous roles he has held include that of Interim Small Business Commissioner for the UK Government during 2020 and 2021. This involved providing support and advice to small businesses on their trading relationship with customers, particularly in respect of payment issues. As the Chief Executive of the Chartered Institute of Credit Management between 2005 and 2020, he also promoted the importance of effective cash flow management across industry by working with small businesses to improve their payment performance.
Isn’t it easier just to pay for supplies when I need them rather than going to the trouble of opening credit accounts for the sake of it?
Having a credit line with a few small suppliers will help your cash flow, will enable you to demonstrate that you pay invoices on time and will, in turn, improve your credit score. It’s a constantly turning circle: the better your credit score, the easier you will find it to obtain credit or funding, and the more quickly you settle your bills, the better your credit score will become.
Always look beyond the present to what your future needs might be.
How do I know if my business credit score might be having a negative impact?
If you ever get turned down for a credit account, ask the supplier if they’ve used a CRA (Credit Reporting Agencies) report in reaching their decision and, if so, which one. If they’re willing to tell you, it’s worth getting a copy of the relevant report so you can see what it says and, if necessary, contact the CRA to correct any information that might not be right.
Why, and how, does the promptness with which I pay my suppliers affect my business credit score?
You might assume that your credit score will be higher if your balance sheet is healthier. Delaying payments to suppliers will mean you have more cash in the bank and will make your accounts look stronger. A strong balance sheet will almost certainly enhance your score but remember that most CRAs capture payment data from their clients and feed the results into their scoring algorithms. If you pay invoices late, this will be likely to reduce your credit score, and it will also make future suppliers wary about granting you credit terms.
Wrapping up
Checking your business credit score is an important part of maintaining your business’s financial health and securing better financing options. But too few people recognise how their business credit score can impact their finances.
Here’s a reminder of the key points:
A business credit score measures your business’s financial trustworthiness, helping lenders and suppliers assess risk when deciding whether to offer credit or favourable terms.
Credit reference agencies (CRAs) calculate scores based on payment history, industry, existing credit, and public records. Higher scores indicate lower risk.
Monitoring your score can help prevent fraud, spot errors, and make more informed financial decisions.
You can try improving your score by paying bills on time, managing cash flow, and limiting credit applications.
Ready to strengthen your business’s financial health?
Start by understanding and improving your credit score with Tide’s Credit Score Insights
Stay on top of cash flow with a Tide business current account, designed for easy, everyday transactions
Simplify your bookkeeping with Tide’s accounting software, so you can focus on growing your business
*Credit score and insights come from Credit Reference Agencies and are obtained by Tide through CreditSafe.
FAQs
Does every business have its own credit score?
Most UK-registered businesses, like limited companies or partnerships, will have a business credit score based on their financial activity and public records. Sole traders typically don’t have a separate business score, so lenders may review their personal credit history instead.
Do new businesses have a credit score?
New businesses start without a credit score, as agencies need trading activity, filed accounts, or credit applications to generate one. Until then, lenders may assess your personal credit score or request additional financial details.
Does the UK use FICO scores?
The UK doesn’t use FICO scores, which are common in the US. Instead, lenders rely on individual Credit Reference Agencies (CRAs) for tailored scoring information.
How often should I check my business credit score?
It’s a good idea to check your business credit score every 3-6 months, or more often if you’re applying for credit or improving your score. Regular checks help you spot errors and address issues quickly.
Does checking a business credit report affect its score?
Checking your own report is a ‘soft inquiry’ and doesn’t impact your score. But ‘hard inquiries’ from lenders or suppliers during credit applications may affect your score if done frequently.
What can I do if my business credit score is poor?
If your score is low, you could focus on improving it by:
Paying bills and invoices on time
Reducing outstanding debt and keeping credit utilisation low
Correcting any errors on your credit report
Filing accounts and tax returns on time
Building a positive credit history with suppliers or a business credit card
How quickly can I improve a business credit score?
Usually, you can see changes to your business credit score within 3-6 months if you consistently pay bills on time, reduce outstanding debt, and correct any errors on your credit report. Credit Score Insights by Tide can help you track your score over time and identify the factors that are influencing it.
