A business credit score is a number that measures a company’s creditworthiness – essentially, how likely it is to pay its bills on time. Lenders, suppliers and insurers use it to gauge the risk of doing business with your company.
In practice, this score is calculated from your company’s financial history: past payments to suppliers and lenders, outstanding debt, filed accounts, public records (CCJs, bankruptcies), and even sector risk.
Business credit scores differ from personal credit scores. A personal credit score reflects an individual’s debt history (mortgages, credit cards, personal loans), whereas a business score is tied to a company’s financial record. For limited companies, the business score is separate from the directors’ personal scores.
Sole traders and partnerships don’t have a separate business file – their personal credit is used instead. In general, your personal score won’t change your company’s score, but lenders may still review both, especially for new or small businesses. For example, the British Business Bank notes that new SMEs often have thin credit histories, so lenders may consider the owner’s personal credit score when assessing finance. As we will show in this guide, business and personal scores serve similar purposes but apply to different entities.
Although a business credit score is important, it’s important to remember that many unsecured business lenders will often look at the details within a business credit report rather than the score by itself, and make an assessment based on all factors.
Business vs personal credit scores
The following table highlights the key differences between a business credit score and a personal credit score:
| Business Credit Score | Personal Credit Score | |
| Applies to | Registered businesses (e.g. limited companies) | Individuals (including sole traders) |
| Based on | Company financials: filed accounts, supplier payments, debts, public records | Personal financials: loans, credit cards, mortgages and personal bill payments |
| Scored by | Business credit reference agencies (Experian, Equifax, Creditsafe, D&B, etc.) | Consumer credit reference agencies (Experian, Equifax, TransUnion) |
| Score range | Varies by agency (e.g. 0–100 for Experian/Creditsafe, 0–1000 for Equifax) | Varies (often 300–850 under Vantage/FICO or up to 999 on UK systems) |
| Affects | Business financing, supplier credit terms, leasing and insurance decisions | Personal loans and credit cards (mortgages, overdrafts, etc.) |
| Interplay | Generally separate, but a new or small business may see the owner’s personal score checked, especially if a personal guarantee is given | (n/a) |
For example, even if your business has a strong score, a very high personal debt load could still make lenders cautious for new loan applications.
Conversely, if your business credit is weak, having a healthy personal credit rating can improve your chances of securing some finance.
How to check your business credit score
In the UK, you can obtain your business credit report from the major credit reference agencies and some specialist services. Popular options include Experian, Equifax, Dun & Bradstreet, Creditsafe and others. Each agency has its own system, so it’s wise to check more than one.
Experian UK
Experian’s “My Business Profile” service lets you view your business credit score and report. (It’s free to try for three months, then in the range of £29.99/month).
Equifax UK
Equifax offers a free statutory business credit report that shows your basic score and risk rating. More detailed reports for suppliers and customers are available by subscription.
Dun & Bradstreet
D&B’s Credit Insights service provides a free basic credit report. A paid tier adds extra metrics like PAYDEX and failure scores.
Creditsafe
Creditsafe allows companies to run a credit check via its platform. Basic reports (real-time score and financials) are often free, with more detail by paid subscription .
Other services
Business finance platforms like Credit Passport also provide credit reports (often powered by Experian data) through subscription.
Commercial Credit Data Sharing (CCDS)
Under a UK government scheme, designated banks automatically share their SME customers’ business account data with the credit agencies. This means your regular business banking activity contributes to your business credit file.
Typically, you’ll need your company name and registration number to get the report. Some agencies allow a limited free check or a trial period; thereafter a small fee or subscription is required. Also, by law (the UK’s Consumer Credit Act and GDPR), you have the right to request a copy of any credit report that an agency holds on your business.
It’s a good idea to review your business credit reports from multiple agencies at least a few times a year. Each agency uses different data and scoring models, so this gives a more complete picture of your standing.
What is a good business credit score?
Higher is always better. Each agency’s scale differs, but all rate higher scores as lower risk. A score of 80 or over is generally considered excellent (on a 0–100 scale).
Here is a guide of what is a good business credit score, per each provider:
Experian
Score 0–100. Experian classes 80–100 as “low risk” (excellent) , 40–80 as moderate, and under 40 as high risk.
Equifax
Score 0–1000. Scores of about 811 or above are typically seen as low risk. Scores 400–810 are fair, below 438 is poor.
Creditsafe
Score 0–100. Here, 100 is the very best – the lowest probability of insolvency. Creditsafe does not publish exact “bands”, but generally higher is better.
TransUnion
Score 300–850. Roughly 781–850 is low risk, 661–780 medium, 300–660 high risk.
Dun & Bradstreet
Several scores exist; for example, the D&B “Failure Score” ranges 1–100 (with 86+ as low risk).
In summary, a “good” business credit score is one that places you in the lowest-risk tier of your scoring model.
For most UK business lenders, having a score in the top quartile of the scale (typically the top 20–25%) means you’ll be seen as financially strong.
For example, on Experian’s 0–100 scale, any score above 80 is usually regarded as very healthy. A fair score in the middle range may still get financing but perhaps with tighter terms, while a low score can make borrowing difficult.
How to improve your business credit score
A business credit score is not fixed – you can take steps to raise it. Here are some practical tips to improve and protect your score:
1. Pay invoices on time (or early)
Prompt payments are crucial. Use automatic payments (Direct Debit) for regular bills, and prioritise critical suppliers. Early and consistent repayments signal low risk.
2. Keep credit utilisation low
If you use business credit cards or overdrafts, avoid maxing them out. Try to stay under ~30% of any credit limit, and pay down debt quickly. If possible, request higher credit limits – this lowers your utilisation ratio.
3. File full accounts on time
Late or incomplete filings at Companies House can hurt your score. Always file full statutory accounts and tax returns by their deadlines. Full accounts give more transparency to lenders. Keeping your registered business details up to date (address, SIC code, director list) also helps, as outdated info can be a red flag.
4. Review and correct your credit reports
Regularly obtain your credit reports from the agencies and scrutinize them for mistakes. Even small errors like the wrong address, date, or debt amount can impact the score. If you spot an error, contact the agency immediately to dispute and fix it.
5. Use business credit, not personal
When you borrow or get a credit card, do so in the company’s name. Building credit history under the business instead of your personal name ensures those positive payments count towards the business credit score. This is especially important for growing companies.
6. Build positive trade references
Good relationships with suppliers can boost your score. If suppliers report payments to the agencies, timely payment of bills becomes credit-building. You may need to ask suppliers to pass on payment data.
7. Separate your business legally
Formalising your business by incorporating as a limited company helps create a distinct credit identity. A business bank account, dedicated phone line and business credit accounts all reinforce this separation. It means business activity goes onto the business file rather than your personal file.
Conclusion
Improving a credit score takes time and consistency. Staying prompt on payments, keeping your business records current, and limiting credit checks are key to gradual improvement. With steady good habits, your score will rise, opening access to larger loans, better interest rates and stronger supplier terms.
By understanding and actively managing your business credit score, you can improve your company’s access to the funding and trade credit that drives growth. A strong score means more lender confidence, better borrowing terms and smoother supplier relationships – all of which help your business flourish.
If you are looking for a loan, Rise Funding can help find the best option for you. Whether it’s a business loan or others, we’re here to help you make a decision with confidence.
Plus, applying with Rise Funding doesn’t affect business credit.
Contact us via the form below, or get an instant business quote through our online questionnaire.
