Small firms lack awareness of their credit scores

Experian’s SME Reputation Index has disclosed that the majority of decision-makers in smaller companies are unaware of what factors can influence the credit rating of their business. The survey of more than 500 financial decision-makers in small and medium-sized companies suggested that only 13% are aware of all the key factors that affect credit scores. It also revealed that only 41% have ever examined their business credit score, with 44% of those doing so more than six months ago. Two main factors that have a negative effect on credit scores are a history of bankruptcy and numerous applications for credit accounts over a short period of time. However, only 46% of small business owners were aware of the impact of these factors on their business credit rating. The survey also suggested that smaller companies in the UK were not aware of factors that can have a positive effect on the credit rating of a business, such as paying suppliers promptly.
For more information about the survey results, go to:
http://press.experian.com/United-Kingdom/Press-Release/over-19-
million-sme-have-limited-awareness-of-how-to-safeguard.aspx

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