8 ways to improve your business credit score

To improve your business credit score, file accurate accounts at Companies House on time, pay suppliers and lenders on or before the due date, keep your credit use low, avoid county court judgments (CCJs) and check your credit file regularly for errors. Giving the credit reference agencies up to date financial information can also lift a score quickly, because many low scores are based on old or incomplete data rather than how the business is really performing.

This guide covers what affects your business credit score, how long each improvement takes, the eight steps that make the biggest difference and real results from businesses we've worked with.

What affects your business credit score?

Your business credit score is a number between 0 and 100 that shows lenders and suppliers how likely your business is to pay its debts on time. Experian, one of the main UK credit reference agencies, groups scores into bands from A (very low risk) to G (imminently failing). Our guide to Experian score bands explains each band in detail. Five things have the biggest influence on your score:

• Your annual accounts at Companies House show your revenue, profit, assets and liabilities.

• Your payment performance shows whether the suppliers who share data report you as paying on time or late.

• Adverse events such as CCJs, Gazette notices and winding up petitions usually pull your score down sharply.

• Your company details include the age of the business, its industry and any changes to directors or shareholders.

• The length of your credit history matters, because a longer record of trading and using credit generally helps.

Most of these are within your control, and many of the common mistakes that can impact your business credit score are easy to avoid once you know about them. The eight steps below focus on each factor in turn.

How long does it take to improve your business credit score?

How long it takes depends on what's holding your score back. Correcting an error or giving Experian newer financial information can lift a score within days, while building a strong payment record takes several months of consistent behaviour. The timings below are typical guides rather than fixed rules, since every credit file is different.

If you need finance soon, start with the high impact, low effort steps. Filing up to date accounts and correcting errors are usually the quickest wins.

1. Keep your Companies House information up to date

Your filed accounts are one of the main sources Experian uses to score your business, so out of date or minimal accounts can hold your score back even when trading is strong. A private limited company must normally file its annual accounts within nine months of its financial year end.Late filing is also visible to anyone who checks your business. To keep your record strong:

• File full, accurate accounts on time every year, rather than leaving it until the deadline.

• File your confirmation statement at least once every 12 months, and keep your registered office, directors and shareholders up to date.

• Make sure every director has verified their identity, because your confirmation statement can't be filed until all directors are verified.

• Correct any mistakes on your Companies House record as soon as you spot them.

Filing more detail can also help. Small companies can currently choose to file limited accounts, but an Experian score can only reflect the information it can see. From April 2028, small companies and micro entities will have to file a profit and loss account with Companies House, so it's worth getting used to sharing fuller figures now.

2. Pay suppliers and lenders on time

Payment history is one of the strongest signals in your credit score. Many larger suppliers share data on how quickly you pay, so a single invoice left overdue can show up as a negative payment performance factor on your credit report.

• Set up Direct Debits for regular bills, so payments go out on the due date automatically.

• Pay supplier invoices on or before the due date, especially with suppliers you know share payment data.

• Stay within your agreed credit limits and overdraft facilities.

• Talk to a supplier before a payment is due if you can see a tight month coming, rather than paying late without warning.

One overdue invoice can matter more than you'd expect. In one case, an accountant spotted a negative payment performance factor on a development company's credit report. Once the business paid the invoice and shared updated financials with Experian, its score moved up a band and its credit limit almost doubled. You'll find the full figures in our results table below.

3. Limit how many credit applications you make

Every full application for finance usually leaves a hard search on your credit file. One hard search is unlikely to cause problems, but several in a short space of time can make lenders more cautious, because it can look as though your business is struggling to get finance.

• Check your business loan eligibility before you apply, so you only approach lenders likely to say yes.

• Space out applications rather than applying to several lenders in the same week.

• Ask whether a lender uses a soft search for its initial quote, since soft searches aren't visible to other lenders.

Comparing options in one place also helps. With a panel of 130+ lenders, a funding specialist can point you towards the lenders whose criteria fit your business, so you don't collect hard searches from lenders unlikely to approve you.

4. Use a dedicated business bank account

Keeping business and personal money separate makes your finances much easier for lenders to assess. If you haven't done so already, our guide on how to open a business bank account walks you through it.

• Run all business income and spending through your business account.

• Keep balances within any agreed overdraft limit.

• Close dormant accounts you no longer use, so your financial picture stays clear.

• Review your statements each month, so you can spot errors or unexpected charges early.

If your business holds surplus cash, our guide to the best business savings accounts can help it work harder, and a healthy cash buffer makes it easier to pay suppliers on time.

5. Use a business credit card responsibly

A business credit card can help build a positive credit history, as long as you manage it carefully. Each on time payment adds to your track record, while a balance close to the limit can suggest your business is stretched.

• Pay at least the agreed amount on time every month, and clear the full balance where you can.

• Keep your balance well below your credit limit.

• Use the card for planned spending rather than to cover a long term cash flow gap.

Our guide on how to use a business credit card to build credit explains this in more detail.

6. Monitor your business credit profile for errors

You can't fix what you can't see. Errors such as a CCJ that's been paid but still shows as unsatisfied, an old address or incorrect company details can pull your score down without you knowing.

• Check your business credit score regularly, and before any finance application.

• Set up alerts, so you hear about a change to your score straight away.

• Read the factors listed on your report, not just the headline number, because they tell you what's helping and what's holding you back.

• Raise any errors with the credit reference agency as soon as you find them.

Regular checks make a real difference. One accountancy firm we work with holds monthly catch ups with client directors to review score and credit limit changes as they happen, so problems are spotted and dealt with early.

If your file is accurate but your score still doesn't reflect how your business is doing, it's worth giving Experian more recent financial information, such as up to date management accounts, so it can see how the business is trading now.

7. Avoid CCJs and legal notices

A CCJ is one of the most damaging entries on a credit file. It stays on the Register of Judgments, Orders and Fines for six years, which can make it much harder to borrow or agree supplier terms for a long time afterwards. Timing makes a big difference to what happens next. If you pay a CCJ in full within one month, you can ask the court to remove it from the register completely. If you pay after that, it stays on the register for the full six years but is marked as satisfied, which shows lenders the debt has been paid.

• Open and respond to statutory demands, payment demands and court papers straight away.

• Speak to creditors early if you can't pay, since an agreed payment plan is usually far better than a court claim.

• Pay any CCJ within one month wherever possible, so it can be removed rather than just marked as satisfied.

• Watch for Gazette notices, which can signal serious action such as a first Gazette notice for compulsory strike off.

8. Build strong supplier relationships

Suppliers who trust you to pay are more likely to offer longer payment terms and higher trade credit limits. Paying them reliably also adds to the payment performance data that feeds your credit score, so the two reinforce each other.

• Pay consistently on time, so suppliers can see a reliable track record.

• Ask for a credit account once you've placed a few orders and paid promptly.

• Agree longer terms upfront rather than stretching payments past the due date.

• Review your terms once a year, especially after your credit score improves.

A stronger score can transform what suppliers offer. One fast growing process consultancy we worked with saw its credit limit rise from £7,200 to £100,000 once Experian had a fuller picture of its finances, which gave it room to tender for larger public sector contracts.

What results have businesses seen after improving their credit score?

The four businesses below each had their credit file reviewed with Experian. All four scores improved, and three of the businesses also saw a large rise in their credit limit or trade credit.

In these cases, the business' score was based on public information that didn't reflect how strongly it was performing, and giving Experian newer accounts, extra documents and context closed that gap.

Check and improve your business credit score with Capitalise

The first step to improving your score is knowing exactly where it stands. With Capitalise, you can check your business credit score for free, powered by Experian, and see your score, your risk band and the specific factors affecting it in a few minutes. Once you create a free Capitalise account, you can also set up alerts, so you know as soon as your score changes. If your score still doesn't reflect how your business is performing, our credit review service can help you put the full picture in front of Experian.