Experts in the Media

Sarah Wells – Dynamic Business

Finance and Money expert

Let’s Talk: How to build a strong business credit profile?

Sarah Wells, Director, Tailored Banking and Finance

Sarah Wells, Director, Tailored Banking and Finance

“Just like your personal credit profile a strong business one will develop the lending and risk DNA of your business. You can also use the insights to help better understand the credit worthiness of your clients and customers, which may assist you with your own internal processes.

“Most of your credit score will come down to how often you apply for credit (frequency) and if you pay your debts on time (character).

“My top tips are:

  • Only apply for credit if you need it – you can make enquiries but ask for them not to be recorded on your commercial credit report unless you actually apply.
  • Automate payments via your accounting software or banking platform.
  • Keep an eye on cash flow and forward plan – if you think you’ll be late with a payment – contact the provider and ask them to defer a payment don’t miss it.
  • For riskier clients and customers have shorter due dates, upfront deposits and interest or late fees.
  • Be aware that large organisations will report you if you miss a payment.

“Improving your business efficiencies and managing your cashflow is the best way to improve and manage your business credit score.”