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What Affects Your Credit Scores?

Posted 17 Jul 16

As a small business owner you will be making financial investments in order to develop your company. At times, you will be able to cover them from the money you make on sales, however, often you will be in need of a business loan.

There are many ways and loan providers you should consider before making decision which best fits with your business requirements. At Tawanda Accountants we offer business lending service specifically designed to our clients’ individual needs. We employ professional and friendly advisors who search for fast and reliable loan providers whose offers best suit our clients’ future plans. In order to use our service, you do not need to provide us with business plans or fill lengthy business loan applications. If you would like to find out more about our offer, contact us today at Tawanda Accountants.

In majority of cases, the possibility of receiving the business loan or a good contract on business utilities will depend on your credit score. It is crucial that you understand how you can increase your credit score and what really affects it.

If you are a sole trader or your company is new, it is likely that your personal credit history will be taken into consideration. This will vary from lender to lender.

Apart from increasing the possibility of getting a business loan that fits with your requirements, a good credit rating will help you secure better trade terms with important suppliers in your industry, or win you contracts with large companies or the government.

Getting a good credit score doesn’t happen overnight. It is a consequent of long and patient work and planning. Fortunately, the steps to keeping it high are small and can be performed every day without taking too much of your time. Even better, some of these can be taken care by your accountant.

1. Pay bills on time, or early if you can

Paying bills on time is the absolute key of getting a good credit score. Your credit score will increase if you pay your bills early.

It’s important to notice that the same rule applies to paying your taxes and filing all the important documents required by Companies House and HMRC on time. These are the basics every reliable business should keep a track of at all times.

2. Business Bank Account

Getting a business bank account for your limited company comes with a range of advantages we covered in our previous articles. Here, it allows your potential lenders a clear view into your company’s finances.

3. Monitor your finances

Having a strong business plan will allow you to create a strong business strategy for your business. It’s important that you avoid any spontaneous decisions when dealing with your company’s finances and that your expenses do not threaten the cashflow. In order to find out how you can plan your company’s finances better contact our accountants at Tawanda Accountants today.