Maintaining a strong business credit score is crucial for financial stability and growth. Many businesses overlook the impact that their credit rating has on securing finance, negotiating supplier terms, and winning new contracts. Regularly checking and, if necessary, improving your company’s credit rating can unlock numerous benefits:
- Enhanced access to financing
Lenders assess your business credit score when considering loan applications. A higher rating increases your chances of approval and can secure better interest rates, making borrowing more affordable.
- favourable trade terms with suppliers
Suppliers often check your credit rating before offering trade credit. A strong score can lead to longer payment terms and larger credit limits, easing cash flow management. If, for example, you have £100k per month of costs within your business and are getting 30-day terms from suppliers, being able to secure 60-day terms (due to better credit scores) will put an additional £100k into your cashflow, permanently!
- Competitive advantage in tendering
Companies bidding for contracts (particularly from large corporations or government agencies) are often required to demonstrate financial stability. A solid credit rating can give you the competitive edge needed to win more business.
- Lower financing costs
A high credit score often results in lower interest rates on loans and better terms from financial institutions. This reduces the cost of borrowing and frees up capital for investment in growth.
- Improved business relationships
A positive credit rating reassures investors, partners, and stakeholders that your business is financially responsible and reliable.
- A bigger exit value
If you’re looking to sell your business, potential buyers will look at your company’s credit ratings as part of their due diligence process. A better credit profile will increase the multiple of profit a buyer is willing to pay. Your exit value will also be impacted by factors such as the company’s bank balance, its debt position and its working capital requirement. Better credit terms from suppliers, facilitated by better credit ratings, will increase the amount of cash you’ll get on exit.
EBA have a strong working relationship with Lightbulb Credit, a company set up in 2018 by James Piper. Lightbulb Credit makes it easy for businesses to access a FREE Company Credit Insight Report, providing a complete overview of your company’s credit ratings from the five leading credit agencies:
- Creditsafe
- Experian
- Dun & Bradstreet
- Equifax
- Red Flag Alert
Requesting your free report is simple:
- Provide basic company details – visit Lightbulb Credit’s website and submit your business information (or contact EBA and we can organise this for you)
- Receive a comprehensive credit report – Lightbulb gathers your credit data from all major agencies and compiles it into a clear, easy-to-understand report.
- Understand your credit position –the report highlights any negative factors affecting your score and how these impact your ability to secure financing, credit terms, and business contracts.
- Take action to improve your credit score – if any issues are found, Lightbulb Credit offers expert advice on how to resolve them and enhance your company’s financial standing.
Best of all, this initial credit report is completely free, giving you valuable insights with no obligation.
If your business credit score is lower than expected, Lightbulb Credit offers a non-win, no-fee credit repair service. This means you only pay if they successfully improve your rating.
Key benefits of Lightbulb’s credit improvement service:
- Rapid Results – many businesses see significant improvements within 72 hours.
- No-Risk Guarantee – you only pay if your credit score improves.
- Expert Support – Lightbulb’s specialists work directly with credit agencies to fix inaccuracies and enhance your rating.
Ongoing credit monitoring for complete peace of mind
To ensure your company’s credit rating remains strong, Lightbulb Credit also offers a credit monitoring service for £120 per month. This service provides:
- Real-time alerts on changes to your company’s credit rating
- A detailed monthly report tracking your progress
- Direct access to expert guidance, whenever you need it
By staying informed about your business credit score, you can take proactive steps to maintain a strong financial reputation.
Summary – why this is vital to your business
Your credit rating is a crucial factor in determining your company’s financial opportunities. By checking your credit score, acting to improve it when necessary, and monitoring it regularly, you can:
- Secure better financing and lower interest rates.
- Gain access to improved supplier credit terms.
- Increase your chances of winning new contracts.
- Get better interest rates on borrowings
- Strengthen trust with investors and business partners.
- Get a bigger pay-out on exit
We strongly encourage our company clients to take advantage of Lightbulb Credit’s free credit report service to understand where they stand and, if needed, work towards rapid improvements.
