Latest News

Small businesses fail to check credit scores

A survey of nearly 700 small businesses has found that more than 71 per cent did not check their customers’ credit status.

Furthermore, the survey by credit agency Experian, found that 39 per cent of small businesses did not even know what a credit score was.

The survey also revealed that 61 per cent had never checked their own score.

Businesses are being warned that if they do not check credit references they could potentially lose out on a contract with a potential new customer, be refused materials from a new supplier or turned down for finance.

Simon Streat, Managing Director of Experian’s UK SME business, said: “Failure to address credit problems may put small and medium sized businesses at a big disadvantage, as many organisations will be put off engaging with a company that has a low score.

"It is important for businesses to monitor their credit score on a regular basis to ensure it reflects their situation accurately and to be able to take action to resolve any issues that are highlighted.

“Simply taking the steps to check the credit score of firms before doing business with them is straightforward and affordable and it could make all the difference."

LINK: SMEs unaware of credit status