Your personal credit score - if you have responsibly managed your own credit, this will positively affect your business’ credit score.The size of your business - this is measured by CRAs either in annual revenue, owned assets, shareholders’ equity, or market capitalisation.Your industry - businesses in historically riskier industries including bars, restaurants, and retail are likely to have lower credit scores.How long your business has been running - the longer your business has been running, the better the impact on your score.Whether you’ve exceeded an overdraft limit - if you have, this is likely to detract from your score.Your bill repayment history if your business has borrowed before - if you have defaulted on payments this will detract from your credit score.In the UK, the 3 main CRAs are Equifax, TransUnion, and Experian.ĬRAs look at multiple aspects of your financial history to calculate your business credit score, taking into account information such as: Your credit score is calculated by credit reporting agencies (CRAs). How is a business credit score calculated?

As a result, you should invest time and effort into building a strong credit history to increase their chances of success. Moreover, business partners may view a low credit score as a sign of risk, which could negatively impact your potential partnership opportunities. A business credit score plays a significant role in a company's ability to access financing, and having a strong credit history is crucial for long-term success.įailing to establish a good credit score could limit your business' access to credit, resulting in higher interest rates and collateral requirements. Most business lenders require a score at or above 75.Īccording to statistics from the UK government, 88.3% of startups survive their first year, but only 39.6% of new businesses make it beyond five years, often due to limited finance options. A personal credit score above 721 is considered average to low risk.Ī business credit score ranges from 0 to 100. Personal credit scores range from a low of 0 to a high of 999. Your business credit score works similarly to your personal credit score. The higher your score, the higher the chance you’ll repay your debt so lenders are likely to give your business a higher credit limit. Your business credit score is the number that represents how lending institutions view your creditworthiness and illustrates the likelihood of obtaining funding for your business. By staying on top of your credit score, you can unlock opportunities and position your business for long-term success. That's why taking the time to understand your credit score and monitoring it regularly would be a wise move for any small business owner. A healthy score can make all the difference when it comes to securing financing and getting favourable terms from lenders.

You know you have a personal credit score, but did you know you have a business credit score too? According to Experian, almost 66% of business owners have never reviewed their credit score, and almost 9 in 10 are unaware of the factors that determine their score.Ī business credit score is not just a number it's a critical indicator of your financial stability and trustworthiness to pay back money.

Credit score range uk