Business credit scores offer a snapshot of your business’s financial health. Each Credit Reference Agency (CRA) uses its own scoring system. For example:
Experian (used by Capitalise) scores from 0 to 100, with ratings from A to F
Equifax uses a scale of 300 to 850
Scores are calculated using a mix of publicly available data (like Companies House filings) and shared data from banks, lenders, and suppliers.
Your business credit score reflects how financially reliable your company appears to lenders, suppliers, and other partners. It’s based on key factors such as:
Your financial performance in annual accounts
Public record filings (e.g. director changes, company structure)
Adverse events like County Court Judgments (CCJs)
Your payment history with suppliers and creditors
The length of your credit history
Cash Flow Indicators (e.g., bank account turnover and liquidity)
Industry Comparisons (risk levels associated with the business's sector or industry)
Credit Account Behavior (patterns in credit usage and repayment history)
Monitoring these areas and maintaining strong financial habits can help improve your score over time.
Experian Business Credit Score scoring model explained On the Capitalise platform, business credit scores are categorised into bands to provide a clear understanding of a company's credit risk. For example, an "Average" credit score corresponds to the range between Band C and Band D. These bands help businesses and lenders assess financial risk more effectively.
Key factors influencing your business credit score and their level of impact
1. Financial performance: the strength of your accounts [High impact]
Your annual accounts filed at Companies House are often the most significant influencing factors. These provide a detailed overview of your company's financial health, including profitability, assets, and liabilities.
Why Credit Scores Fluctuate
Business credit scores are dynamic and can change frequently as new data becomes available. Common reasons for fluctuations include:
Changes in payment behaviour, such as delays or early payments.
Newly reported borrowing or changes in credit utilization.
Updates to financial filings or company records.
Shifts in industry risk levels or economic conditions. Even small updates to any of these factors can impact the score.
2. Adverse events: negative indicators [High impact]
Significant negative events, such as County Court Judgements (CCJs) and records of winding-up petitions, severely and negatively impact your business credit score.
3. Public records: key business events [Medium impact]
Your business credit score also takes into account public records from Companies House, such as changes to directors, shareholders, or company structure. Frequent changes or signs of instability can affect how creditworthy your business appears.
4. Credit history length: Demonstrating stability [Medium impact]
The longer your business has been trading and using credit, the more data credit agencies have to assess your financial behaviour. A long, consistent credit history helps show stability and can improve your credit score.
5. Payment performance: meeting your obligations [Low impact]
Your history of settling trade and supplier debts and consistently paying on time positively impacts your score, while late payments have a detrimental effect.
Additional Factors Influencing Credit Scores
Cash Flow Indicators: Bank account turnover and liquidity [Medium impact]
Cash flow indicators, such as the turnover in your bank accounts and overall liquidity, provide insights into your business's financial stability. Strong cash flow management can positively influence your credit score.
Industry Comparisons: Sector-based risk levels [Low impact]
The risk levels associated with your business's sector or industry are also considered. Certain industries may inherently carry higher risks, which can affect your credit score.
Want to know more about business credit scores? Read our Ultimate guide to business credit scores.