Credit score

Almost half of SMEs have never checked their credit score

Nearly half of SMEs (44%) have never checked their credit score, according to the latest research from RateSetter's business finance division.

Lenders use credit scores to determine whether businesses have a good track record of repaying debt and are one of the key factors affecting an SME’s ability to obtain finance.

Credit reference agencies compile reports based on financial information available to them, which includes all loans and other types of credit that a business has received and, most importantly, whether a business has kept within the agreement and repaid the money.

Mark Williams, head of business credit at RateSetter, said: “Checking your business credit history is one of the simplest things you can do to ensure that you have the best chance of securing the finance your business needs in order to grow and become more productive.

“Even a simple mistake in your credit history such as an incorrect address can affect lenders’ perception of your business, meaning that you’re unable to secure a loan or get good terms on credit agreements.”

RateSetter’s research also found that a further 6% of businesses had not checked their credit score within the last 12 months and only 18% had viewed their score within the last six months.

Leave a comment