Can I secure business finance if I’ve got a bad credit score?

Make sure information on your file is correct. For example, having a wrong address on your file will have an impact on your score. There may be other problematic items that you can identify – for example, if your score is linked with someone with bad credit or there’s fraudulent activity on your account. 

If you have a history of late payments, this will show in your credit history. The sooner you can start demonstrating to lenders that you are less of a risk, through regular payments and by clearing existing debts, the better chance you’ll have of securing finance.

If you are trading as a limited company and you are late filing your accounts at Companies House, this will have an impact, so get it sorted as soon as possible. Make sure that you provide your accountant with all the information they need – get those accounts registered quickly each year.

Don’t try and pull the wool over the eyes of prospective lenders. It’s better to provide them with the full picture, even if there are things that you're not keen to talk about. They’d rather have an up-to-date picture of your situation than no information at all. 

Avoid making lots of credit applications in a short space of time. Every time an application is made the credit search will be visible on your file. This can reflect badly as it indicates to lenders that you may be desperate or, alternatively, ‘shopping around’.