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The Importance of Your Business Credit Score

What is a Business Credit Score? And why is it so important? Our friends at Lightbulb Credit Repair explain.

We all know that your personal credit score is important - whether you’re buying a house, looking for new utilities, or applying for a credit card. So why aren’t business owners more focused on their business credit score?

This week’s blog post comes courtesy of our partners Lightbulb Credit, who offer credit repair services to UK businesses - read more about what they do here.

What is a Business Credit Score?

A Business Credit score works in a similar way to your personal credit score. It’s a measure of your company’s creditworthiness and has an impact on things like your access to funding and the rates you are offered, the terms offered by your suppliers and your ability to tender for work.

How does Business Credit Repair work?

Working directly with the five main credit rating agencies in the UK and the UK’s leading insolvency prediction tool Red Flag Alert, Lightbulb Credit helps businesses to review their credit scores, identify their specific issues and take direct action to improve them, and is the only service of its kind in the UK. 

How does Business Credit Repair improve your Business Credit Score?

Lightbulb provide a more up-to-date view of your company’s current financial position by sharing key business data confidentially with the agencies.

Our credit experts then work directly with the agencies on your behalf to get scores re-evaluated and updated, often in just a few days. You can choose to either focus on one specific agency or improve your scores across multiple agencies. 

What’s involved in Business Credit Repair?

The process is fast and straightforward and involves just 4 steps:

REVIEW - we provide a FREE report showing your company’s current credit position with the 5 main agencies.

RECOMMEND – we identify specific actions to improve those ratings.

REPAIR – you add business info to our templates, and we get scores re-evaluated.

RESULTS – in as little as 2 days on a no improvement/no fee basis.

Can Business Credit Repair be used in any sector?

Absolutely. Here’s a case study on how we helped a company in the construction sector.

Our client is a regional construction company that had a turnover of £6m when we first engaged with them. 

They contacted us after being rejected from several large housing association tenders because of their credit rating. Up to this point they had not been aware their rating was low or experienced any other issues as a direct result. 

Housing Associations apply specific hurdle rates to all new tenders, which include a minimum business credit rating. This ensures that the companies they appoint to a build contract are financially stable and have the ability to complete the contract. 

This created extreme frustration for our client as their existing credit rating did not seem to reflect their current trading figures or growth. 

We improved their ratings with Experian, Creditsafe and Dun & Bradstreet, enabling them to successfully tender for many new contracts straight away. The increased credit rating and limits also helped with their working capital. 

The credit repair only took a matter of days but was the catalyst for significant and rapid growth of the company, who have since grown their turnover to over £20m.

Interested in learning more about your company credit profile?

Get your FREE no-obligation company credit insight report from Lightbulb today with our exclusive link.

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