What is a business credit score?

A business credit score is a rating that reflects how creditworthy your business is. Lenders, suppliers and other businesses use it to assess the risk of offering credit and trade terms, or entering into a contract with you. A higher score is considered to be a lower list when lending. 

A strong score can open doors to better financing rates, improved supplier terms and faster approvals. A weak one can limit your options or increase what you pay for finance.

Your business credit score is held and calculated by credit reference agencies (CRAs), which collect data from a range of sources including Companies House, court records and your payment history with lenders.

Business vs personal credit score

Your business credit score and your personal credit score are separate. A personal credit score reflects your individual borrowing and repayment history - think a personal mortgage for your home or a personal loan for the family car. 

A business credit score reflects the financial behaviour and health of your company as its own,  separate, entity. For limited companies, the two are generally kept distinct, though some lenders will look at both. For sole traders, the line between personal and business credit is more blurred, since a sole trader isn’t a separate legal entity from the individual.

Why your business credit score matters

A strong business credit score can make a real difference to how you access finance and on what terms. Lenders use your business credit score as one of the key factors in deciding whether to approve your application and what rate to offer.

Suppliers offering credit or leasing and asset finance will also check your business credit score before offering credit or assets. Some larger businesses and public sector clients check supplier credit scores before awarding contracts too, so it becomes even more important.

UK business credit reference agencies

In the UK, the main agencies that hold and calculate business credit scores are:

• Experian - one of the most widely used by lenders. Scores run from 0 to 100, with higher scores indicating lower risk. Experian also provides a business credit report alongside the score.

• Equifax - uses a different scale and scoring model. Scores and bands vary by product and report type.

• Creditsafe - widely used in B2B contexts, particularly for supplier credit checks. Scores run from 0 to 100.

• Dun & Bradstreet - commonly used for larger businesses and enterprise-level credit checks.

Each agency uses its own model and data sources, so your score may differ between them. This is normal and doesn't mean any one score is wrong, it’s just based on the different methodologies and data sets.

How score ranges differ by agency

Because each agency has its own scoring model, it's important to understand what a score means in context. A score of 70 out of 100 on Experian means something different to a score on a different agency's scale. 

Always check the risk band descriptors alongside the number, rather than comparing raw scores across agencies. Agency-specific score ranges and risk bands should be verified directly with each provider, as they can update their models.

How to check your business credit score

Checking your own business credit score doesn't affect it. It's a 'soft' check, meaning it leaves no footprint that other lenders or businesses can see. 

Free ways to check

• Experian Business - offers a free business credit score check via the Experian Business website. You'll need to register and verify your business.

• Creditsafe - offers a free trial that includes access to your own business credit report.

• Companies House - while not a credit report, the information Companies House holds about your business, including filed accounts, charges and director details, feeds into how agencies score you. It's free to check what's on record.

Paid reports and monitoring

For ongoing monitoring, most credit agencies offer paid subscription services that allow you to track your score over time, receive alerts if something changes, and access more detailed data about the factors affecting your score. This is useful if you're planning to apply for finance or a significant contract in the near future and want to know exactly where you stand before you do.

How to check another company's credit score

You can check the credit score of another business, for example a potential customer or supplier, through the same agencies. Creditsafe and Experian both offer tools for this. Basic information is often free; more detailed reports are typically paid. This is standard practice in B2B relationships, particularly before extending trade credit or signing a significant contract.

What your business credit report includes

Your credit score is a summary figure, but your full credit report contains the detail behind it. A typical business credit report includes:

• Company details - registered name, address, directors and company registration number

• Payment history - how promptly the business pays its debts and invoices

• County Court Judgements (CCJs) - any legal judgements for unpaid debts registered against the business

• Accounts data - filed accounts from Companies House, including revenue, assets and liabilities

• Credit enquiries - records of who has searched the business's credit file recently

• Credit limits and existing finance - outstanding borrowing and credit agreements

What affects your business credit score

Things like your business payment history - paying invoices, loan repayments and bills on time - along with an outstanding debt and County Court Judgements (CCJs) are used when working out your business credit score. High levels of debt relative to your turnover can pull your score down, and a CCJ can significantly damage your score.

Company age and trading history, filed accounts, director history and number of credit searches also come into play when your credit score is being calculated. Late filings, dissolved businesses, insolvency and multiple hard credit searches in a short period can all be seen as red flags when it comes to business credit score.

Does opening a business bank account affect your credit score?

Opening a business bank account is unlikely to affect your business credit score significantly in itself. Most account opening checks are soft searches, which don't leave a footprint on your credit file. However, if the bank conducts a hard search as part of the process, this will be recorded and may have a minor short-term impact.

The main way a business bank account influences your credit score over time is indirectly: by building a track record of financial activity, managing payments reliably, and keeping your business finances clearly separate from personal ones. This is positive for your credit profile in the long run. If you're unsure about the type of check a specific bank carries out when opening an account, check with them directly before applying.

How to improve your business credit score

Improving your score takes time, but the steps are practical and within your control. There are detailed steps for how to improve your business credit score, but paying on time and filing accounts on time with Companies House are two of the most visible and significant signs that can affect your credit score positively. Make sure your details are accurate and up to date at Companies House too.

Reducing outstanding debt where possible to keep your debt levels proportionate to your turnover can also help, as can separating your business and personal finances. You should check your report regularly to make sure nothing is dragging your score down - and if you spot anything that looks wrong, speak to the relevant agency.

Check your eligibility for a small business loan with Funding Circle - it won’t affect your credit score.

FAQs

How often should I check my business credit score?

Checking quarterly is a sensible routine for most businesses. If you're planning to apply for finance, sign a major contract or onboard a new supplier in the near future, check it a few months beforehand so you have time to address anything before it counts.

Is it free to check my company credit score?

Up to a certain point. Most agencies offer a free basic score check, and checking your own score is always a soft search, so it won't affect your rating. More detailed reports and ongoing monitoring typically require a paid subscription.

Why is my score different across Experian, Equifax and Creditsafe?

Each agency uses its own scoring model and data sources, which means scores naturally differ. This is normal. What matters is understanding your score in the context of each agency's own risk bands, rather than comparing numbers across agencies directly.

Does applying for a business loan affect my credit score?

It can, depending on the type of search carried out. Checking your eligibility for a business loan with Funding Circle as a limited company does not affect your credit score. A full credit application may involve a hard search, which will be recorded on your file. Check with any lender before applying if you're unsure of the type of search they run.

Disclaimer

16/08/26 – While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. All information is correct at time of publishing, and customers should do their own research before making financial decisions. If you have any questions, please speak to your professional adviser or seek independent legal advice.