6 Strategies to Boost Your Business Credit Score & Unlock Energy Deals

Boosting your business credit score isn’t just about securing finance. You can also unlock business energy savings. In this guide, you’ll find actionable tips to enhance your credit and leverage it to negotiate better business energy deals.

Why Do Business Credit Scores Matter?

If you have a limited company, your business will have its own credit score with each of the largest four business credit bureaus in the UK (Experian, Creditsafe, Equifax and Dun & Bradstreet). Your business credit score can play an important role in your financial health.

A high credit score shows customers, partners, suppliers and lenders that your business is stable and trustworthy. So whether you need a loan, want to bid for new contracts, or negotiate better terms with suppliers, your credit score will be key.

How is a Business Credit Score Calculated?

Credit bureaus calculate your business credit score using public data and information reported to them such as your payment history, bank accounts and any borrowing. Sometimes, outdated records or not enough information can lead to a score that doesn’t truly reflect your business’s current status.

For small businesses, credit scores often update after significant events like filing annual accounts. However, these updates can already be out of date by then. Filing abbreviated accounts can also have an impact because they provide less information.

Why Do Credit Scores Matter For Energy Deals?

Having a good business credit score is crucial if you want to save money on your energy bills. Energy providers check your business credit score to assess the risk of your business not being able to fulfil the contract. A strong credit score indicates that your business is reliable and has a history of paying its bills on time, making it a lower risk for the provider.

With a high credit score, you are more likely to get better rates and more favourable terms on your energy contract. This advantage means you can secure lower energy prices and more flexible payment options, reducing operational costs and improving your bottom line.

6 Tips to Build a Good Business Credit Score

1. Pay Bills on Time

It’s important to prioritise paying your bills to suppliers, lenders, utility providers and creditors on time. This approach shows that you are reliable and financially responsible. Avoid bounced or missed payments, as they can hurt your credit score.

2. Check Your Credit Score Regularly

Regularly review your business credit score to spot errors, inaccuracies, or signs of fraud. Quickly fixing mistakes helps keep your score accurate. You can sign up for a free account via Capitalise, our trusted partner, and check your business credit score at your convenience.

3. Build up a Positive Credit History

Establishing a credit history will help to build up and showcase your business’s creditworthiness. You could consider taking a short-term business loan or a credit card to build a positive credit history. You should always meet your payments on time to avoid negative factors, such as a County Court Judgement (CCJ), which could significantly impact your business credit score. This positive history makes it easier to get larger loans in the future.

4. Maintain Good Relationships

Trust and reliability with suppliers and lenders can positively impact your credit score. It’s always important to meet your financial obligations and communicate openly with suppliers and lenders if any issues arise. If you have any outstanding payments, ensure these don’t become late to avoid negative reports to credit agencies.

5. Credit Check Businesses You Work With

Running credit checks on customers, suppliers, and partners helps identify potential financial difficulties and allows you to take early action. This proactivity helps protect your business from other potential financial troubles.

6. File Company Accounts on Time

Timely and consistent filing of company accounts is crucial, as these are key sources of information for credit bureaus. Ensure director details are up-to-date and that company accounts are filed on time to maintain a strong credit score.

By following these simple strategies, you can improve and maintain a strong business credit score. These actions strengthen your financial stability and help you secure better energy deals and other opportunities.

Check Your Business Credit Score

Now that you understand the importance of your business credit score, it’s important to keep track of it. To get started, just sign up for Capitalise, one of our trusted partners, and you’ll be able to see your business credit score.

Save on Energy

Energy prices are unusually high for businesses, making bills very costly for SME owners. At BusinessComparison, we can help you compare deals from gas and electricity suppliers, allowing you to find the best energy rates for your premises.

Let Us Help Your Business

BusinessComparison can help you compare vital business products and services, securing the best deals and saving precious time. Compare with us today to save time and money.