Your business credit score is a key factor that lenders assess when you apply for financing. In fact, it directly influences which finance options are available to you and on what terms. Here’s how credit score can affect your funding journey:
Positive impact of a high score: if your business has a strong credit score, lenders view you as a lower-risk borrower. This often means more finance options and better offers. You’re likely to see higher approval rates and access a wider panel of lenders, including some of the most competitive banks and institutions.
Consequences of a low score: if your business credit score is low or poor, it can limit your finance options. Some mainstream lenders might decline your application outright if you fall below their credit threshold. Those that do offer loans will typically charge higher interest rates and/or impose stricter conditions to compensate for the higher perceived risk.
What you can do
If your score is not as high as you’d like, consider taking steps to improve it before seeking major funding. You can access your full Experian-powered business credit profile through Capitalise when you subscribe to a paid plan, this won’t harm your score. Understanding what impacts your score will help set realistic expectations for the kind of finance you can get.
To go further, read our article How can I maintain and improve my business credit score?.