Breaking Flooring NewsBusiness NewsFlooring Headlines

Credit rating factors misunderstood

Just 2 out of 5 financial decision makers in UK SMEs have ever checked the business’s credit report, a survey by Experian has found.

Of these, 44% checked their report more than 6 months ago and ‘curiosity’, rather than wanting to improve their access to credit, was the main reason for doing so.

The survey also found that just 13% were ‘completely aware’ of the factors that influence their credit score. Only 39% of micro firms, those with 0-9 employees, have checked their credit report.

Many SMEs wrongly thought that certain factors would have an adverse effect on their credit rating:

  • regularly using an overdraft (17%)
  • making employees redundant (9%)
  • having more than 5 credit-card holders in the company (3%).

Similarly, many incorrectly identified criteria they thought could positively influence their rating:

  • a healthy bank balance (49%)
  • paying bills before due date (21%)
  • taking on more employees (5%)
  • moving into bigger premises (2%).

Experian’s managing director of SME business, Ade Potts, said:

“A business credit score forms a key part of the decision making process for lenders, service providers and many businesses. Whether a small business is applying for finance with a lender, credit with another business, competing for a supplier contact or simply trying to get a good deal on their business mobile contract, they need to understand that their business credit score will play a role.”


Show More

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.

Privacy Settings
Technical Cookies
In order to use this website we use the following technically required cookies: wordpress_test_cookie, wordpress_logged_in_, wordpress_sec.
We use Cookies to give you a better website experience.
Privacy Policy
Check if you have accepted our privacy policy.
Terms & Conditions
Check if you have accepted our terms & conditions.
For perfomance reasons we use Cloudflare as a CDN network. This saves a cookie "__cfduid" to apply security settings on a per-client basis. This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.