A business’s credit rating tells potential investors, clients and the wider public much about how you do business. It tells people a story about your overall trustworthiness – much the same way your own personal credit rating tells a story about your credit journey and worthiness.
What You Need To Know
Your credit rating is important. Future suppliers will use this information as will banks and other financial organisations when processing borrowing applications. Therefore, getting your business’s credit score up to the mark is crucial.
By doing the following actions and activities within the daily churn of your business activities you can help improve your score and how other businesses perceive your business more widely. This helps to “paint a positive picture”.
What Actions Can I Take?
Small actions, from making sure invoice payments are collected as early as possible and perhaps delaying dividend payments can help improve your overall annual financial wellbeing. You should always file your accounts on time and in full. It is fair to say that early filing doesn’t give your score a bump, a late filing can have a negative impact on your credit score. So, by filing as early as possible, you make your company look credible and organised.
Much like personal credit scores, the more credit applications you make, the worse it can look from a credit score analysis perspective. Make sure you talk any credit applications over with a financial expert – like Prestige Business Management – who can help you during the application process.
County Court Judgements are the death knell of credit-based borrowing. Avoid CCJs by making sure any disputes are handles quickly and any legal proceedings are fair and balanced – which means having sound legal advice. If you do get a CCJ, make sure you make payments as per the agreement and pay it as soon as possible. Anyone looking at your company’s credit report will find a CCJ problematic, so you will need to take action fast.
Call Prestige Business Management Today To Help With Your Business Credit Rating
Remember there is no “fast fix”. If anyone promises one, be wary. Your business will need to put credit building into the core of its business operations. You need to make sure you are not negatively impacted. And always join credit agencies like Experian or Equifax to see your latest credit file as and when it is released.
If you are worried about your company’s creditworthiness or have any issues regarding your credit score, Prestige Business Management will gladly help you understand the basics and how you can help improve your score. Why not call 0203 774 2927 today to talk to us directly?
This Prestige Business Management article is for guidance only – please do not utilise the guidance above as a form of financial advice.