A strong business credit score is more than a number it’s proof that your company is reliable, stable, and financially healthy. It can make or break opportunities to access funding, secure large contracts, and win new customers.
If you’ve been refused trade credit or simply want to strengthen your business reputation, here are five practical ways to build a better business credit score.
The more information credit reference agencies (CRAs) can see about your company, the more accurate your score will be.
If you only file micro or abbreviated accounts, consider submitting full accounts even if not legally required it gives lenders and partners a clearer picture of your financial stability.
Also double-check that your data is accurate and up to date. Mistakes in company credit reports can hurt your score, so ensure your accountant (or you) submits the correct information to Companies House every year.
Consistent on-time payments are one of the strongest indicators of financial reliability.
Even when cashflow is tight, delaying invoices sends warning signals to CRAs and partners. A pattern of late payments can lower your score and flag your business as high risk.
If you haven’t already, set up automated payments through direct debit or BACS. Not only will this help your credit score, but it also strengthens supplier trust.
Remember: Late payments today can limit your funding options tomorrow.
A CCJ can seriously damage your credit profile. Make sure your business contact details are always current, so you’re aware of any court communications.
If you do receive a CCJ:
Not all CRAs weigh satisfied CCJs equally, so prevention and swift resolution is key.
Tip: Set calendar reminders to review your credit file quarterly to catch any unexpected entries early.
Protect your own score by only extending credit to trustworthy customers.
Establish a company-wide acceptance policy so all departments sales, finance, and operations follow the same rules for onboarding new clients or suppliers.
Integrating real-time company data into your systems, such as with Creditsafe Connect, allows everyone in your organisation to make informed, consistent decisions.
Smart move: Use automated monitoring to track changes in your customers’ financial health.
Late incoming payments are a hidden killer of business credit scores. They can quickly disrupt cashflow and make your business appear financially unstable.
Solutions like Creditsafe’s 3D Ledger help you:
Keeping your receivables healthy keeps your credit score healthy too.