What is a good business credit score?

Running your own small business means wearing a lot of different hats. You have to define the strategic course of the company. Deal with clients and suppliers. Manage your staff. And keep on top of your finances. But is monitoring your credit score also on your to do list? Knowing your business credit score helps you keep your business financially healthy. We explain how your credit score is rated and what you can do to improve this score.

What is a business credit score?

A business credit score measures the risk of lending to you. It’s a rating that’s generated by the major credit reference agencies, like Experian or Equifax. This credit score is used by banks, creditors, suppliers and customers so they can make a well informed decision about whether to trade with you, or offer you a business loan.

Do businesses have credit scores?

Yes! If you run a limited business, your company will have a credit score separate to  your personal one. Although they work in much the same way. However, if you’ve just registered your company, you may not see your business credit score straight away. Your business credit score is a measure of how creditworthy your business is. It’s one thing banks, lenders and suppliers use to make decisions about lending, investments or term agreements.  If you’re a sole trader you will have a business credit score but this will be closely ties to your personal credit score to assess your creditworthiness. 

To see your credit score, you can check it through your Capitalise account, which shows the same Experian score lenders use.

What is a GOOD business credit score?

Different agencies use their own scales. For Experian, business credit scores range from 0 to 100. The higher the credit score, the better your financial position as a business is seen to be.

For example, a score of

• 81 to 90 = low risk.

• 51 to 80 = below average risk

• 2 to 15 = maximum risk 

Take a look at the Commercial Delphi Score table to see the full list of credit ratings.

Is grade B good for business credit?

A Grade B credit rating is typically considered good. It reflects a business that pays reliably, has stable finances and represents a low level of credit risk. With a Grade B profile, you should find it easier to negotiate better trade terms, secure funding and access higher credit limits.

What is a bad credit score for a business?

A bad business credit score usually falls in the riskier bands of the scale. With Experian, a score below 25 is considered high or maximum risk.

A poor score can be the result of:

• late or missed payments

• high levels of debt

• overdue accounts

• County Court Judgements (CCJs)

• trading in an industry with high failure rates

• signs of financial stress within the business

If your score drops into these lower ranges, you may find that lenders decline applications, suppliers reduce your credit limits, or you’re asked to pay upfront.

How does a business credit score work?

Credit agencies build your score using a mixture of public data, financial information and behavioural trends. They look at:

• how consistently you pay your bills

• how much credit you’re using

• the strength of your financial accounts

• any signs of instability, such as rapid dips in turnover

• whether there are any legal or financial issues registered

• your business sector

This information is combined to predict how likely your business is to default or pay late. Lenders rely heavily on this prediction when deciding whether to approve your application or extend credit terms.

How can I check my businesses’ credit score?

You can check your business credit score right now by signing up to Capitalise for Business. If you’re already signed up, you can check your score at any time by simply logging in. We work with Experian, one of the UK's leading credit bureaus, to show you the same score and data used by banks and lenders.  

How to build a good business credit score

Building your business credit score takes time, but with the right habits, you can improve it steadily. Here are some simple tips to help you get started:

• File your accounts on time
  Submitting your accounts regularly shows lenders that your business is reliable.

• Pay your bills and suppliers quickly
  Late payments can hurt your credit score, so try to pay everything on time.

• Keep your borrowing under control
  If you have multiple loans or credit lines, think about reducing them or combining them into one loan.

• Start building credit history
  Using a business credit card and paying it off regularly is a great way to build your score.

• Close unused accounts
  If you have bank accounts you don’t use, it’s better to close them.

• Avoid legal or financial trouble
  Try to keep your business free of County Court Judgments (CCJs) or signs of insolvency, as these can lower your score.

These small steps can make a big difference over time. By staying consistent and organised, you’ll put your business in a stronger position to access funding when you need it. For more tips, you can also read our article on how to improve your credit score.

How to improve your business credit score

If you’re looking for a faster way to strengthen your business credit score, the best place to start is with the accuracy of your credit file. Even small errors or outdated information can hold your score back.

With our Credit Review Service, you can get your file reviewed directly by experts at Experian. They’ll check the data held on your business, correct any inaccuracies and update missing information. When your financial position is reflected properly, your score can often improve more quickly, especially useful if you’re preparing to apply for funding or renegotiate supplier terms.

Check your business credit score today

Staying on top of your credit score is one of the simplest ways to strengthen your financial position. With clearer insight into how lenders view your business, you can make confident decisions, secure better terms and spot issues before they impact your ability to borrow or trade. Sign up today to check your business credit score with Capitalise so you can stay informed and take action when it matters most.