Just like a personal credit score, your business is ranked, and a poor reading could limit your financial options in the future, whereas a good credit score can really help to legitimise your business in the eyes of a lender. Prescot based accountancy firm Butterworth Barlow offer some top tips to keep your business credit score in check.
Use a business bank account
We would recommend operating your business expenditures from a business bank account, registered under the company name as opposed to your own. Not only does this legitimise your business but it also helps us as accountants to separate your personal and business expenses when it comes to compiling reports. Although using a business bank account ensures that there is a complete record of spending, we would always advise keeping paper copies of receipts too.
Take out a business loan
Taking out business loans and credit can be daunting however, for most small and medium sized businesses, it is a necessity. If they are managed and maintained correctly then they can actually boost your business credit score considerably. At Butterworth Barlow we work with our clients to factor in any loan repayments as part of financial reports and are on-hand to keep things in check when it comes to meeting deadlines. As with any credit loan, make sure you’re clued up on the fine print and know how much you can afford to pay back on a monthly basis.
Meet those deadlines
Timing is a key factor when it comes to maintaining or improving your credit score and we work closely with our clients to advise on those all-important deadlines including the likes of tax returns and filing expenses to name a few. We understand that whilst you’re running a business, accounts deadlines are not always at the forefront of your mind but Butterworth Barlow are here to keep things in check. When it comes to the likes of tax returns, missing deadlines can have significant penalties and can have a huge hit on your business credit score.
Employ the help of an accountant
Having a trusted accountancy firm on board can automatically boost your credit score and make your business more desirable to lenders. Certified accounts from a trustworthy source will give your business real credibility and will open doors when it comes to lending and seeking financial support.
For more information call Butterworth Barlow on 0151 493 9700 or visit www.butterworthbarlow.co.uk