A business credit score is an agency's estimate of how likely your company is to pay its debts, built from Companies House filings, court judgments, payment records shared by suppliers and lenders, and credit searches. Each agency calculates its own, so there's no single universal score. Filing on time, paying suppliers promptly, keeping your company details accurate and dealing with any judgments are the steps that improve it.
When you apply for a loan, open an account with a new supplier or bid for a contract, the other side will often run a credit check on your company. What they see is your business credit file: a record of how the company is run, how it pays and whether anyone has had to chase it through the courts.
Many business owners never look at theirs until a lender turns them down. This guide explains what's in it, who keeps it, why your score can differ from one agency to the next, and what you can do to improve it.
What a business credit file is
A business credit file is a record about your company, kept by a business credit reference agency: a company that collects information from public records and from businesses that share their data, and sells reports to lenders, suppliers and others.
From that information, each agency produces a credit score, usually alongside a suggested credit limit, meaning roughly how much credit it thinks suppliers could safely give you. A score is the agency's view of how likely your company is to fail or fall behind on payments over the coming months. It isn't a judgment on you as a person, and it isn't a rating anyone officially awards.
If you're a sole trader, there's no separate business file in the same sense. Lenders look at your personal credit file, because you and the business are legally the same.
What goes into it
Most of what feeds a business credit file comes from a handful of sources.
| Source | What it shows |
|---|---|
| Companies House | Your filed accounts, confirmation statements, directors, registered office and any late or missing filings |
| Registered charges | Security given to lenders, such as debentures or mortgages, and whether they've been satisfied |
| Court judgments | County court judgments (CCJs) against the company, and whether they've been paid |
| The Gazette | Official notices, such as winding-up petitions or proposals to strike the company off the register |
| Supplier payment data | How promptly you pay suppliers who share data with the agency, often measured against agreed terms |
| Lender and bank data | Loans, overdrafts, cards and other facilities, and how you've repaid them |
| Credit searches | Which organisations have checked your file recently |
A few of these deserve more explanation.
Your filed accounts give agencies the numbers behind the business: net assets, cash, debts and, where you file it, turnover and profit. Very small companies can file slimmed-down accounts that reveal little. That's allowed, but with less to go on, an agency may score you more cautiously.
Charges are registered at Companies House when a company gives a lender security. They're normal for a business that borrows, but a long list of outstanding charges can suggest the company's assets are already pledged. When a secured debt is repaid, the charge stays on the register as outstanding until a statement that it's been satisfied is filed. Lenders often arrange this, but the company is the one with the stale record if nobody does, so it's worth checking.
Payment data is where the day-to-day picture comes from. Many suppliers and lenders share information on how promptly their business customers pay. Under a government scheme, the largest banks also share data on their small business customers with designated agencies, so other lenders can see more than your filed accounts.
Credit searches leave a footprint. A run of searches from lenders in a short period can suggest a business is applying widely, which may make the next lender more cautious.
The main agencies
There are several business credit reference agencies in the UK, including Experian, Equifax, Creditsafe and Dun & Bradstreet. Each collects its own data, has its own data-sharing partners and builds its own scoring model.
That's why your company can look good with one agency and less good with another. One may hold payment data from a supplier that the others don't see. One may weigh a late filing more heavily, or treat a new company more cautiously. Their scales differ too: some score out of 100 and add a letter or a risk band, others use different ranges.
The practical upshot is that there's no single business credit score. When a lender or supplier talks about your score, it means the score from whichever agency it uses. If you're checking your own, look at more than one if you can, and focus less on the number than on what's driving it.
How your personal file connects to your company's
For a small or young company, the directors matter as much as the company. Lenders often look at both, especially when they ask a director for a personal guarantee.
The link works in a few ways:
- Lenders check directors' personal files alongside the company's, using the personal credit reference agencies. Personal defaults or CCJs can count against a business application, even if the company's own record is clean.
- Agencies note directors' other companies. If a director has been involved with companies that failed or were struck off, that history may show on reports about the current one.
- A thin company file leans on the people. A company with one year of trading has little history of its own, so the directors' track record fills the gap.
Our guide to business loans with bad credit explains how lenders weigh personal marks such as defaults and CCJs.
How to check your company's file
Unlike your personal credit file, there's no general legal right to a free copy of your company's file. But you have several options:
- Start with Companies House. Search for your company on the free Companies House service and check that the registered office, directors, filing history and charges are all correct. Much of what agencies hold comes from here.
- Check the agencies. Some business credit reference agencies offer a free basic score or summary report. Fuller reports usually cost money, either one-off or by subscription.
- Check court records. You can search the Register of Judgments, Orders and Fines for judgments against the company, for a small fee.
- Ask why you were refused. If a lender turns you down, ask which agency it used. Our guide to what to do after a business loan is declined covers this in more detail.
If you find something wrong, contact the agency that holds it. It will usually check with the source, whether that's a lender, a supplier or a public record, and correct its file if the data is wrong. If the error is in Companies House, correct it there and the agencies will pick it up.
How to improve your business credit score
Most improvements are slow and steady rather than instant. Scores move as new information arrives, so changes may take a few months to show. These are the steps that make the most difference.
- File on time, every time. Late accounts and confirmation statements are one of the most common and most avoidable reasons for a weaker score. Persistent failure to file can lead Companies House to start striking the company off the register, which is published in The Gazette and is a serious red flag to anyone checking you. Set reminders well ahead of each deadline.
- Keep Companies House accurate. Update it promptly when directors, shareholders or your registered office change. Companies House has also introduced identity verification for directors and people with significant control, so make sure everyone required has done it. Check GOV.UK for what applies to your company and when.
- Pay suppliers on time. Agreed terms are what you're measured against. If you need longer, negotiate it up front rather than simply paying late.
- Keep your details consistent. Use exactly the same company name, registered number and address on your bank accounts, supplier accounts and applications. Mismatches can split your payment history or make you harder to match to your own records. Frequent changes of registered office can also look unsettled.
- Settle CCJs quickly. If the company gets a judgment, pay it in full within a month if you possibly can. In England and Wales, a judgment paid in full within one month can be removed from the register. Paid later, it stays for six years but is marked as satisfied, which looks much better than an unpaid one. If you believe a judgment was entered wrongly, for example because the claim went to an old address, take advice promptly about asking the court to set it aside.
- Clear old charges. When a secured debt is repaid, make sure the charge is marked as satisfied at Companies House.
- Build a track record. A modest facility, such as a credit card or a supplier account, used and repaid on time, gives agencies positive data to work with. Don't take on borrowing you don't need just for this.
- Apply carefully. Use eligibility checks that rely on soft searches before full applications, and avoid applying to several lenders at once.
- File accounts that tell your story. If the business is stronger than the minimum filing shows, talk to your accountant about whether filing fuller accounts would give agencies and lenders a fairer picture.
Common mistakes
- Treating one score as the score. Different agencies, different numbers. Look at what drives each one.
- Ignoring post to the registered office. Court claims and official letters are often sent there. A missed claim can turn into a default judgment you didn't know about.
- Letting the company's details drift. An old address on a supplier account or a director who left years ago still listed at Companies House both cause problems.
- Paying the company's bills from personal accounts. It blurs the line between you and the business, and the company gets no credit for the payment.
- Assuming a new company starts with a good score. A new company has little history, and some agencies score that cautiously until a record builds up.
Questions people ask
How do I check my business credit score?
Start by checking your company's record at Companies House, which is free. Some business credit reference agencies, including Experian, Equifax, Creditsafe and Dun & Bradstreet, offer a free basic score, with fuller reports usually paid. Because each agency scores differently, it's worth checking more than one.
Why is my business credit score different with each agency?
Each agency collects its own data and uses its own scoring model and scale. One may hold supplier payment records that another doesn't, or weigh late filings differently. There's no single universal business credit score.
Does my personal credit affect my business credit score?
Your personal file and your company's file are separate records, but lenders often check both, especially for small and young companies. Agencies may also show a director's links to other companies. If you give a personal guarantee, your personal history matters even more.
How long does it take to improve a business credit score?
Usually months rather than weeks, because scores change as new filings, payment data and records arrive. Some fixes, such as correcting wrong details or satisfying an old charge, can help sooner once the agencies update.
Does a new company have a credit score?
Usually yes, once it's registered at Companies House, but with little history the score may be modest. Filing on time, paying suppliers promptly and keeping your details accurate build it up as the company trades.
Tell Lending Lenny in two minutes. One specialist broker, no credit check to start.
This guide is general information, not financial advice. Rates, rules and lender criteria change, so check the details with your broker or lender before you sign anything. Lending Lenny is not a lender.