Credit Score For Dummies

Here in the UK there are many small business owners who have decided that they simply cannot trade on. I have spoken to many every week who have injected their own capital into the business in the last six months, only to find out that they have used it all up with no tangible rewards.

I feel so sorry for these directors. I often write that a Director must separate the business shell which is the limited company liability from the business. In short it is what you do and make and sell which is more important than the name of the company which you operate by. Many Directors find it hard to divorce themselves from XYZ Ltd.

Starting a small business involves a huge amount of money, which most people get from loans. In order to qualify for good small business loans, however, you need to have an impressive credit rating. Before you apply for a small business loan, make sure that you are in good credit standing. Doing so lowers your chances of your loan application getting rejected. Here are the most important things you have to do to ensure that you have a good credit rating:

1. Get in touch
Get in touch with any of the credit reporting agencies — Experian, Equifax or TransUnion — and request for a copy of your latest credit report.