How can I improve my credit rating?

Created by Katie Deverill, Modified on Wed, 19 Oct 2022 at 06:13 PM by Katie Deverill

 File Annual Accounts early 


The newer the accounts, the more representative they are of your company's status. As the accounts age, they become less and less relevant to a company's current status and the credit score may drop accordingly, particularly where companies file an abbreviated balance sheet.


Make sure credit agencies receive your accounts in good time. Filing late is the biggest contributor to decreased credit scores. It is imperative that a company file Accounts well before the due date to ensure Companies House process and release the financial on time. If you file on the last day of the month, it is very unlikely that credit agencies such as Company Check, will receive the accounts and therefore the score will drop as the systems will assume they've not been filed. File early and you can prevent this.


Companies are considered higher risk, the later they file. Small companies should file within 15 days of the filing date. Analysis has shown that small sized companies who file within the final 15 days of their due date are almost three times more likely to become insolvent than a company who files in good time. For large companies "No Rating" is provided if the accounts are filed late.


 Balance your Balance Sheet


Financial Performance has a large impact on the credit status of a company. A decrease in turnover, profit and / or cash figures may result in a decrease in credit score.


 Minimise changes in management 


Some changes cannot be avoided and regular activity among directors is unlikely to affect your credit rating. Analysis has shown however, that companies who undergo a higher number of management changes are more likely to become insolvent. The weighting that this factor carried will be dependent on other factors that carru weight in the algorithm. 


 Keep ALL your Companies in good standing


Director's history and performance - If a director is associated with companies which are insolvent or have adverse information this may affect the score. If the company is part of a group, the companies within the group will also be analysed to look for adverse information such as insolvency.


 Demographics


Where the company is based may have an affect on the score if the area has seen an increase in insolvencies


 Keep track of your Mortgages, CCJ's and Debts 


The amount and number of mortgages against the company will affect the score. 


Exact match CCJ's are kept on record for 6 years, whether they are satisfied or unsatisfied, unless they are settled within one month. To reduce the impact on the score, settle CCJ's within one month or as soon as possible.


 Keep the Auditors happy


Comments from Independent Auditors - Any adverse comments will affect the score.

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