Business Credit Rating - How to improve?
Business Credit Rating - How to improve?
Author
Discussion

BGARK

Original Poster:

5,638 posts

277 months

Wednesday 16th September 2015
quotequote all
We use http://www2.creditsafeuk.com/ - costs a couple of hundred pounds each year and allows to track and check all manor of customers or suppliers.

However when checking our own credit rating, it is fairly low, and has been for a couple of years.

We pay people on time, have cash in the bank, no bad debts and so on..

My question is who can you contact to check what the possible issue might be?

Thanks.

LordHaveMurci

12,338 posts

200 months

Wednesday 16th September 2015
quotequote all
Are they still around? Used to pester us all the bloody time, must have finally taken the hint!

We credit check Companies quite frequently, often surprised that Companies seemingly worse than ours have a higher recommended credit limit than we do confused


BGARK

Original Poster:

5,638 posts

277 months

Wednesday 16th September 2015
quotequote all
LordHaveMurci said:
often surprised that Companies seemingly worse than ours have a higher recommended credit limit than we do confused
Exatly this, who makes the decision to up/downgrade your business. I need to know!

StevieBee

15,457 posts

286 months

Wednesday 16th September 2015
quotequote all
We were recently turned down for a fuel card with a £500 monthly limit because...and I kid you not....we had an unusually high credit score for a small company and posted unusually good figure last year.

So keep run your business ragged, keep your credit score low and the world's your oyster.

Mad gone world....!

Jockman

18,414 posts

191 months

Wednesday 16th September 2015
quotequote all
Due to the lack of information in abbreviated accounts for example Experian et al make assumptions on the bits they don't know. These assumptions could be wrong.

You could always try submitting full accounts to companies house to avoid erroneous assumptions?

You also don't mention your gearing - do you have much long term debt / loans?

It's ok to have cash in bank etc but is your liquidity ratio higher than 1:1 - or even your acid test ratio excluding stocks?

How is interest cover? How much net profit are you generating compared to your interest payments?