What Is a Company Credit Score?

Understanding your company credit score is an important step in managing your business finances. This score can affect your ability to get loans, negotiate better payment terms with suppliers, and grow your business. Lenders and partners use it to decide how risky it is to work with you, so having a strong score can open up more opportunities.

In this guide, we explain what your company credit score means, how it’s calculated, and the steps you can take to build, maintain, or improve it.

What is a company credit score?

A company credit score (also called a business credit score) shows how trustworthy your business is when it comes to paying bills and managing credit. Experian, one of the largest credit bureaus in the UK, scores businesses with a range from 0 to 100 and A-F. the higher the score, the lower the risk you appear to lenders and suppliers.

A company credit score works much like a personal credit score but is linked to your business, not you as an individual.

Your score is based on various business-related factors, including how promptly you pay invoices, how much credit you use, and your company’s overall financial stability. These indicators help determine how likely your business is to repay debt or honour trade terms.

Why your company credit score matters

Your company credit score is a key part of your business’s financial reputation. It shows how trustworthy your business is when it comes to borrowing and paying on time. A strong score can help you get approved for loans, secure lower interest rates, and reduce the overall cost of borrowing.

Suppliers also look at your score. A good rating can help you negotiate better payment terms, giving you more time to pay and improving your cash flow, which is vital for day-to-day operations.

Your credit score can also boost your business’s reputation. It shows potential partners and customers that your business is stable and reliable.

In short, a strong company credit score can lead to:

Better loan terms and lower borrowing costs
More flexible deals with suppliers
A stronger reputation in your industry
Greater opportunities for growth and partnerships

Does my company have a credit score?

If your business is a limited company registered in the UK, it will have a company credit score. Credit reference agencies like Experian, Equifax, and Creditsafe automatically create a credit profile for all limited companies using public and financial data.

Even if you're not actively using credit, your company score still exists and may be affected by things like payment history, filing records, or company structure.

How are company credit scores calculated?

Your company credit score is calculated using a mix of financial, behavioural, and public data that reflects how your business manages its financial obligations. Credit reference agencies, like Experian, apply proprietary algorithms to weigh these factors and generate your score. Here's a breakdown of the key components:

Key factors used to calculate your company credit score

Payment history: whether your business consistently pays invoices and debts on time. Late or missed payments negatively impact your score.
Credit utilisation: the percentage of available credit your business uses. Lower utilisation suggests financial stability.
Company age and size: older and larger businesses often score higher due to more established credit histories.
Industry risk: certain sectors are seen as riskier, e.g. hospitality or construction, which can affect credit scoring
Credit history length: a longer history of responsible credit use generally supports a higher score.
Financial performance: figures from your annual accounts, like turnover, profit margins, and debt levels, are factored in.
Public records: legal filings such as County Court Judgments (CCJs), bankruptcies, director changes, or company structure updates.
Trade credit behaviour: how reliably you pay suppliers and service providers with whom you have credit arrangements.

Each credit agency may weigh these elements differently, but overall, your financial reliability, payment discipline, and operational stability drive your company credit score.

How to check your company credit score?

Keeping track of your company credit score is a smart way to stay in control of your business’s financial health. Regular checks help you spot potential issues early and take steps to strengthen your score over time.

With Capitalise, you can check your company credit rating for free. The platform gives you easy access to your credit profile, real-time alerts on any changes, and clear insights on where you can improve.

To stay on top of your score, set a regular check-in schedule, monthly or quarterly is a good place to start. With a Capitalise account, you’ll also get automatic notifications whenever something changes, so you’re always one step ahead.

By making company credit score checks part of your routine, you can protect your business, unlock better funding options, and build a stronger financial future.

Who can see your company credit report?

Your company credit report is often used by others to understand how financially reliable your business is. It helps them decide whether to work with you and on what terms.

Here’s who might check your credit report and why:

Lenders: To decide if they should approve a loan and what interest rate to offer.
Suppliers: To see if you’re likely to pay on time before offering trade credit.
Business partners: To assess risk before entering into contracts or partnerships.

A strong credit report can improve your chances of securing better deals and building trust with the people you do business with.

What is a good company credit score?

Experian company credit scores range from 0-100. A higher score indicates lower risk to lenders and suppliers.

A good company credit score is generally considered to be 75 or above. This suggests your business has a solid financial track record — including things like paying bills on time, low debt levels, and consistent trading history.

If your business credit score is low and you would like it to be reviewed, you can use the Capitalise Credit Review Service.

How to build company credit from scratch?

The first step to build company credit is to establish your business as a limited company. You’ll then need to open a dedicated business bank account to clearly separate personal and business finances.

Next, take these steps to build your credit history:

Get a business credit card: Use it for regular spending and pay it off in full each month.
Set up trade accounts with suppliers: Your suppliers will report your payments to credit agencies which will build your payment history.
Check your business credit report regularly: This helps you track progress and spot any errors early.

“Building credit from scratch takes time, but with consistent, strategic financial practices, your business can develop a strong credit profile that opens up access to funding and better terms in the future.” Nick Richardson, Head of Funding, Capitalise.com

How to improve your company credit score

Once you've established a credit profile, the next step is to actively strengthen it.

Here are specific actions you can take to improve it over time.

1. Pay on time

Consistently paying suppliers, lenders, and other creditors by the due date is one of the most important factors in improving your score. Set up automated payments to avoid missed deadlines.

2. Reduce outstanding debt

Lowering your current balances shows responsible credit use and improves your credit utilisation, a key factor in your score. If debt is becoming hard to manage, refinancing can be a helpful option to consolidate balances and reduce repayment pressure.

3. Avoid too many credit applications

Frequent credit checks in a short time can signal risk and negatively affect your score. Only apply for credit when necessary.

4. Check your credit report regularly

Review your business credit report for errors, outdated information, or signs of fraud. Dispute anything that’s inaccurate with the credit agency directly.

5. Ask suppliers to report payments

Not all suppliers report payment history by default. Reach out and request they report your positive payment behaviour to credit agencies like Experian or Equifax.

6. Keep company records up to date

Make sure your business accounts and filings (like annual returns) are submitted on time. Incomplete or overdue records can affect your score.

Common mistakes that hurt your company credit score

Avoiding simple mistakes can make a big difference to your credit score. Here are the most common ones to watch out for:

Inconsistent payment patterns that reflect unreliability
Maxing out credit limits, which negatively affects utilisation ratios
Failing to monitor your credit report, allowing errors or negative items to go unchallenged
Mixing business and personal finances
Not updating business information on Companies House, which can lead to inaccurate or incomplete records

Having a solid grasp of your business credit score is a key step of your financial success. It can unlock better financing options and streamline your growth.

Company credit scores: a guide for business owners