Explore more insights

accountants, small business, credit score

What does credit score "C" mean? 

Introduction to credit scores

Capitalise Mar 20, 2023

Introduction to credit scores


Business credit scores range from 0-100 where 0 is the highest risk and 100 is the least risk.

Credit scores are used by third parties such as suppliers and lenders to assess the risk and creditworthiness of a business. Limited companies and LLPs have a business credit score based on the companies financial and non-financial data. Sole traders and unincorporated partnerships have a score based on their personal (or consumer) credit score.

There are various companies who calculate credit scores based on a range of factors and the algorithms which each company determines. Experian is the prime bureau in the UK used by the major lenders and companies. 

Experian’s credit scores, also known as Delphi scores, are grouped into bands from A-G. 


Why are credit scores important?


A credit score of between 51 and 80 is a very wide band. It is also known as a “C” credit score.  It will mean that:


  1. As the lending market has tightened, for the more mainstream banks and lenders, you may not reach their credit hurdle to be able to access their products.  Therefore you will be reliant upon sending propositions to alternative lenders who are likely to charge higher interest rates. 
  2. You will probably still be able to access supplier credit, but for those who use trade indemnity cover to insure their debtor book, your terms and limits may be low.  This will restrict your ability to use internal working capital to fund your company’s growth. 
  3. Your profile will be seen as average to potential customers, joint venture partners, new senior recruits or purchasers of your business when you are ready to exit.  To gain an improved profile, you should look to increase your credit score to a B or A.

How to focus on your credit score

Only 29% of business owners know their own credit score and those who track it, are 6 times more likely to be in the “A” range.

If you were to achieve a higher credit score, you would most likely receive better terms from lenders.  Plus suppliers may even offer you improved credit terms as you’d be a company they really wanted to work with. 

There are almost 100 different factors which affect your business credit score, such as your financial results, your filings at Companies House, your payment performance as reported by your larger suppliers and the searches which others conduct on your company.

Using Capitalise for Business you are able to monitor your credit score and those of your customers and suppliers.  You can regularly receive prompts and insights as to what will improve your credit score and then you can take action to do so. 

Read more about business credit scores. 

alternative finance
invoice finance
case study
trade finance
contract finance
working capital
startup loans
fashion finance
merchant cash advance
future accountant
product of the month
women in funding
partner of the month
business tips
live session
international women's day
covid19 coronavirus
corporate finance
accounting firm
asset finance
hire purchase
credit score
business funding
business credit score
south africa
small business
business loan
property finance
commercial mortgage
credit imporvement
spring budget 2023
small businesses
spring budget
commercial mortgages
trade debtors
cash flow
truck finance
late payments
lorry finance
building a financial safety net
trade debtor days
bridging loan
credit checks
interest rates
balance sheet
bad debt
company credit checks
debt collection
credit control
check company credit
business loans
instant offer
credit scores
credit review service
company credit check
commercial property
revolving credit facility
line of credit
Follow Us
Sign Up to Receive Updates

Related content

  • Post Wrapper

    business tips, accountants

    When working remotely becomes more than just a dream

    Hear how Ben Nacca achieved the dream

    Adriana Amato
  • Post Wrapper

    news, finance, accountants

    Tier 1 lenders increase their product offering

    So much more than just working capital. 

    Paul Surtees
  • Post Wrapper

    news, accountants, fintech

    Nesta Open Up Challenge Finalist

    Capitalise wins a place on the Open Up Challenge Stage 2 by Nesta's Challenge Prize Centre:

    Paul Surtees
  • Signup to our newsletter

    Have insights about the accounting community sent straight to your inbox. Sign up to our newsletter.