Self-employed lead way for specialist mortgages
Many small businesses are failing to keep track of their credit score, according to new research.
A poll from RateSetter Business Finance found 44 per cent of SMEs have never checked their credit rating despite it being vital in their ability to gain finance, with a further six per cent admitting they have not checked in the past 12 months.
Just one in five businesses have looked at their credit rating in the past six months even though any wrong information could have an impact on their financial options.
Credit reports provide details of current and past lending, as well as details of any other potential issues for potential lenders, including County Court Judgements.
Paul Marston, managing director for Commercial Finance at RateSetter, explained: “Checking your business credit history is one of the simplest things you can do to ensure that you have the best chance of securing the finance your business needs in order to grow and become more productive.
“Even a simple mistake in your credit history such as an incorrect address can affect lenders’ perception of your business, meaning that you’re unable to secure a loan or get good terms on credit agreements.”
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