If you approach a lender to access company finance, their lending decision will be based on your credit history amongst other considerations. It will track your borrowing and repayment behaviour which will be used to assess your business for creditworthiness.
Your credit history will also note any creditor action that may have been taken against you, such as County Court Judgments (CCJ) or winding up petitions. These are clear warning signs that will illustrate your level of discipline and control when handling money. If you are in substantial arrears with creditors, this will raise a red flag, making the lender aware of your financial position.
Your credit information is stored by credit agencies, such as Creditsafe, to help suppliers and lenders trade confidently. This information is populated from a variety of sources, including the Insolvency Service, Companies House, County Courts, and the Electoral Roll.