Your ultimate guide to business credit scores

If you run a business, your credit score can make a big difference to your success. Whether you’re applying for finance, setting up trade accounts with suppliers, or bidding for new work, your business credit score will help others decide if they can trust you to pay on time and keep your financial commitments.

In this guide, we’ll explain what a business credit score is, why it matters, how it works, what affects it, and how to check and improve your own score. We’ll also cover what shows up on your business credit report and how you can use it to your advantage.

What is a business credit score?

A business credit score is a rating that shows how creditworthy your company is. In simple terms, it helps lenders, suppliers and other businesses decide how risky it might be to work with you.

In the UK, there are three main credit bureaus that assess business credit scores: Experian, Equifax and Dun & Bradstreet.

Each bureau collects and analyses data to give your business a score. This score is based on several factors, such as:

• How long your business has been trading

• Whether you pay suppliers and other companies on time

• Your company’s financial position

• Any negative records like County Court Judgments (CCJs)

• The industry you operate in

These scores help others make informed decisions about offering your business credit, goods or services.

Why does your business credit score matter?

Here are a few reasons why your business credit score is important:

Access to finance

Most lenders check your business credit score before approving a loan. It’s one of the first things they look at. If your score is too low, you may be declined straight away.

For example, many lenders will only consider businesses with an Experian credit score above 45/100 (around a D rating or higher). If you don’t meet that threshold, your application might not go any further.

Some lenders do work with businesses that have a low score, but it usually comes with higher interest rates or stricter terms.

Payment terms with suppliers

If you buy goods or services on credit, your score will affect the terms you're offered. Suppliers want to work with businesses that pay on time and are financially stable.

A good credit score can help you:

• Access trade credit

• Delay payments for 30, 60 or even 90 days

• Get better pricing or bulk discounts

A poor score might mean you have to pay upfront or lose out on flexible terms. This can hurt your cash flow and make it harder to grow.

Winning new work

If you sell to other businesses or bid for contracts, your credit score can play a role in whether or not you’re chosen. Other companies may run a credit check to assess your financial health and reliability.

If your credit report includes negative information, such as a CCJ or missed payments, it could raise red flags. This might stop you from being selected for a project or delay the start of a new partnership.

How does a business credit score work?

Each credit bureau has its own scoring system, but they all use a mix of data to assess your business. This includes public records, payment history, industry benchmarks, and financial filings.

Experian

Experian rates businesses on a scale from 0 to 100. Higher scores indicate lower risk. They also give each business a letter rating, from A (very low risk) to F (failed company).

Most lenders, high street banks and suppliers in the UK use Experian’s scoring model, so it’s often the most relevant one to keep an eye on.

Equifax

Equifax also rates businesses using a numerical score. Their system runs from 300 to 850, with higher numbers representing better creditworthiness.

Dun & Bradstreet

D&B uses several scores, including the PAYDEX score, which looks mainly at how promptly you pay suppliers. This also ranges from 0 to 100.

Although these systems differ, they all aim to predict how likely it is that your business will pay its debts and meet its obligations on time.

You can see in the diagram below how Experian business credit score bands work:

What affects a business credit score?

There are several factors that influence your business credit score. Each one gives credit bureaus a different view of your company’s financial health and behaviour.

• Payment history
  An important factor in your business credit score is whether you pay your bills, loans, and other financial commitments on time. Regular, on-time payments can improve your score, while paying late or very late can bring it down.

• Length of your credit history
  The longer your business has been using credit, the better. A longer history gives lenders and suppliers more insight into your financial behaviour and helps show your reliability over time.

• Public records
  Negative records, such as County Court Judgments (CCJs) or notices published in the Gazette, can seriously impact your score. These records suggest financial difficulties and higher risk to potential creditors.

• Level of company information available
  Credit bureaus rely on accurate, up-to-date data to assess your score. If your business information is limited or out of date, it can lower your score because they can’t make a complete assessment.

• Industry-specific data
  The industry your business is in will have some impact on your score. Credit bureaus can use data on payment behaviour, or likelihood of failure, within a particular sector to provide context and make an estimate.

• Financial statements
  Annual accounts give credit bureaus a detailed view of your financial health. Positive trends, like improved cash flow or strong year-on-year growth, can boost your score. Filing late or showing financial losses may reduce it.

Can your credit score improve?

Yes, your business credit score can improve over time. By taking the right steps, like building a credit history and making payments on time, you can steadily boost your score and strengthen your credit profile.

It’s also important to deal with any negative marks as quickly as possible. For example, if a County Court Judgment (CCJ) is registered against your business, paying it off within 30 days will prevent it from staying on your credit report for up to six years.

To understand what’s holding your score back, you can log in to your Capitalise account and view the specific risk factors affecting your business. This will help you focus on the areas that need the most attention.

If you're looking to improve your score more quickly, you might want to consider a professional credit review. Credit bureaus usually update scores once a month, or when there’s a major event like filing new accounts, so waiting for an automatic update can take time. With our Credit Review Service, you can send the latest business information directly to Experian for a reassessment. The process only takes a few days, and in 96% of cases, businesses see an improvement in their score.

How can you check your business credit score?

You can check your business credit score for free with Capitalise for Business. When you sign up, you’ll be able to see your Experian credit score, your credit limit and any risks to your profile. You’ll also be able to receive instant alerts on any changes, so you can always be up to date.

Can you get a business credit report?

Yes, you can get a business credit report to see how your company is viewed by lenders, suppliers and other businesses. Your report includes your credit score, payment history, risk factors, and any public records like CCJs. It gives a full picture of your financial health and can help you spot any issues early. With Capitalise for Business, you can access your Experian credit report for free and download it as a PDF when you need it.

How often should you check your credit score?

It’s a good idea to check your business credit score regularly, at least once a month. This helps you stay on top of any changes, spot problems early, and make sure your information is up to date. If you’re applying for funding or working with new suppliers, checking your score ahead of time can also help you prepare. With a Capitalise account, you can get alerts whenever your score changes, so you’re always in the know.