In the decade since 2014, the UK lending landscape has transformed. As highlighted in Kirsty McGregor’s webinar How Credit Scores Are Becoming Increasingly Important for Business, by 2025 over 60% of total gross lending to SMEs was provided not by traditional high-street banks, but by fintechs and challenger banks. With this shift has come a more data-driven approach to lending—and at the centre of that data ecosystem sits the business credit score.

For small and medium-sized businesses, the credit score is no longer an obscure metric checked only when applying for finance. It is an intangible asset, shaping everything from supplier terms to insurance premiums, funding costs, and strategic opportunities. As trusted advisers, accountants have a crucial role to play in helping clients understand, monitor, and strengthen this vital measure of financial health.

This article summarises the key actions that businesses—and their accountants—can take to maintain a strong business credit score.

Why a Healthy Business Credit Score Matters

A business credit score influences:

• Access to funding and the pricing of loans
• Trade credit limits from suppliers
• Contract opportunities and partner due diligence
• Insurance, leasing, and commercial negotiations
• The business’s overall financial resilience

With so much now dependent on automated credit decisioning, maintaining a strong score is not optional—it is essential.

How Businesses Can Maintain a Healthy Credit Score

Kirsty McGregor outlines several practical steps that SMEs should take. These come directly from the transcript of the webinar.

1. Pay Suppliers on Time—Every Time

Payment performance is one of the strongest indicators used by credit reference agencies. Late payments quickly lower a score, and patterns of poor payment behaviour can be long-lasting.

Businesses should:

• Put robust systems in place for invoice processing
• Avoid habitual delays or selective prioritisation
• Set up approval workflows to prevent bottlenecks

Accountants can assist by reviewing working capital processes and recommending automation tools to improve reliability.

2. Avoid Using the Maximum of Overdrafts and Credit Facilities

Operating at the top end of overdrafts or maxing out business credit cards is a red flag for lenders and credit agencies. It suggests cash flow strain and reduces confidence in the company’s financial stability.

Good cashflow forecasting and budgeting help to keep facilities within sensible utilisation levels.

3. Monitor and Manage Company Filings Carefully

Public data held at Companies House feeds directly into business credit assessments.

Businesses should ensure that:

• Accounts are filed on time
• Filings are accurate and consistent
• Structural changes (e.g., directors, secretaries) are planned with awareness of credit implications

4. Respond Immediately to Any CCJs

A County Court Judgment (CCJ) can devastate a business credit score.

From the transcript:

• If a CCJ is paid within 30 days, it does not remain on the credit file.
• If not paid within 30 days, it stays on record for six years—even if the amount is only £50.

Businesses must prioritise payment of any CCJ urgently, as the long-term damage far outweighs the short-term cash impact.

5. Open Supplier Credit Facilities Strategically

Opening more supplier credit accounts—when done responsibly—can help build a thicker, more reliable credit file and improve limits. Supplier finance relationships create positive credit data trails when managed well.

6. Understand and Monitor Credit Searches

A high volume of credit searches on a business can signal risk.

As the transcript notes, accountants should help clients identify unusual spikes in search activity and explore whether suppliers, lenders, or others are assessing the business—and why.

How Accountants Can Support Their Clients

Accountants are uniquely placed to help clients understand and optimise their business credit scores. Kirsty McGregor emphasises several core responsibilities for advisers.

1. Educate Clients About Credit Scores

Many small business owners do not fully understand:

• How credit scores work
• Why they matter
• How decisions are made
• What behaviours influence the score

Accountants should provide simple explanations and regular reminders, especially around key filings or financial events.

2. Implement Systems That Support Prompt Payment

You can help clients:

• Improve invoicing processes
• Automate payables
• Put cashflow controls in place
• Ensure supplier payment routines never slip

This proactive approach not only protects their credit score but improves their business discipline.

3. Encourage Early Planning for Funding

Waiting until the last minute to apply for finance often exposes weaknesses in the credit profile.

Accountants can:

• Run early pre-checks
• Help clients identify issues well before needing capital
• Mitigate factors that might otherwise lead to declined applications

4. Review Credit File Accuracy and Public Data

Accountants can support clients by:

• Checking for errors
• Ensuring timely filings
• Correcting inconsistencies
• Monitoring directorship changes
• Tracking upcoming deadlines

Even small administrative details can influence a score.

A strong business credit score is now one of the most valuable intangible assets a company can hold. In a world where fintech lenders and automated scoring systems dominate SME finance, the significance of maintaining a healthy credit profile has never been greater.

Businesses must take consistent, informed action—paying suppliers on time, managing filings, avoiding over-extension, and monitoring risk signals. Yet they do not have to do this alone.

Accountants have the expertise, systems knowledge, and strategic insight to guide clients towards better credit behaviours and long-term financial resilience. By embracing their advisory role, accountants can help clients strengthen their credit scores, secure better funding, and unlock greater commercial opportunities.

FAQ:

1. Why is a business credit score so important today?

Business credit scores are increasingly used by lenders, suppliers, insurers, and partners to make decisions. With around 60% of SME lending now coming from fintechs and challenger banks, automated credit scoring plays a major role in access to finance, supplier terms, and overall commercial opportunities.

2. What factors influence a business credit score the most?

Key factors include:

• Payment history with suppliers
• Use of credit facilities (e.g., overdraft utilisation)
• Public filings at Companies House
• Outstanding County Court Judgments (CCJs)
• Credit searches performed on the business
• Trade credit performance and supplier relationships
• Overall financial health based on filed accounts

3. How can a business improve or maintain a strong credit score?

Businesses should:

• Pay suppliers on time
• Avoid maxing out overdrafts or credit cards
• File accurate accounts promptly
• Monitor their credit file regularly
• Respond immediately to CCJs
• Build credit history through supplier finance
• Keep company director and secretary changes to a minimum
  
  

4. What should a business do if it receives a CCJ?

Pay it within 30 days.
If paid within this period, it can be removed from the credit file. If not, it stays on record for six years, regardless of the amount—even a £50 judgment will severely impact the credit score for that entire period.

5. How often should businesses check their credit file?

Regularly—ideally monthly. This helps identify:

• Errors
• Unexpected credit searches
• Missed payments
• Filing issues
• Alerts from suppliers or lenders

.

6. What role can accountants play in helping clients improve their credit score?

Accountants can:

• Educate clients on how credit scores work
• Support systems that ensure timely payments
• Monitor credit files and highlight risk signals
• Manage Companies House filing timelines
• Assist in planning for funding well in advance
• Review public information and correct inaccuracies
• Help open supplier credit facilities

7. Can an accountant dispute or challenge an unfair credit score on behalf of a client?

Yes. Accountants can request a manual review of a credit score if it appears inaccurate or outdated. According to the transcript, around 96% of reviewed scores increase, and scores cannot be lowered during this process.

8. What is the Credit Review Service and when should it be used?

It’s a paid service that allows the accountant to submit up-to-date financial information or contextual details for reassessment. It is most useful when:

• A client’s recent strong performance isn’t reflected in their score
• Filing changes have temporarily affected the score
• The business is preparing for lending or supplier credit
• Supplier limits need improving

It can also increase recommended credit limits, unlocking larger supplier terms.

9. Does changing directors or company secretaries affect a credit score?

Yes. Structural changes filed at Companies House may influence how a credit reference agency views stability. Accountants should advise clients to avoid unnecessary changes and plan unavoidable ones carefully.

10. How do credit limits work, and why are they important?

Credit limits reflect the amount suppliers are recommended to offer a business. Even businesses with a perfect score can benefit from a credit review, as limits often increase significantly—sometimes from £25,000 to £100,000 per supplier. With multiple suppliers, this can create substantial free working capital.

11. Can credit searches negatively impact a business?

Yes. A high volume of searches may signal that lenders or suppliers are assessing risk, which could indicate financial pressure. Accountants should help investigate unusual search activity and understand the underlying cause.

The contents of this article are meant as a guide only and are not a substitute for professional advice. The author/s accept no responsibility for any action taken, or refrained from, as a result of the material contained in this document. Specific advice should be obtained before acting or refraining from acting, in connection with the matters dealt with in this article. The information at the time of publishing was accurate and could be subject to final changes.