Credit Checks Part 2

The September survey completed by Experian also found that 39 per cent of small businesses did not know what a credit score was and 61 per cent have never checked their own score, leaving them unaware of issues that could lead to them being turned down for finance or refused materials by a new supplier.

For some small businesses, low scores can stem from a lack of detailed data about the business or a failure to file complete or accurate information, rather than any underlying financial insecurity.

Simon Streat, Managing Director of Experian’s UK SME business, said: “Two-thirds of small businesses may be blind to their credit scores, but their larger customers, suppliers and banks certainly won’t be. 

“It is important for businesses to monitor their credit score on a regular basis to ensure it reflects their situation accurately and to be able to take action to resolve any issues that are highlighted. 

Factors such as incomplete accounts, a location change, the move from non-limited to limited status, or mergers and acquisitions, can all influence credit scores.