There is a strong correlation between your business's credit score and the energy prices you're offered. Your business's credit score will determine how much you pay for your business energy, what energy supplier you will use, and the type of deal you can receive.

If you're looking to pay lower business energy prices, your credit score needs to be as low as it can be. Today we will be explaining what a credit score is, what you can do to improve it, plus questions like 'do credit scores affect business energy prices?'

Don't let bad mistakes affect your business credit - use our guide to find out the best practices to pay the best premiums possible on your business's energy bills.

What is a business credit score?

So what is a business credit score? This kind of credit score will measure the worth of a business regarding credit. It is made up of a combination of different factors but ultimately will understand the financial position that a business is in.

This financial position also takes account of the financial risk of a business. These scores range between 0 and 100, with numbers closer to 0, meaning a business is at a higher financial risk, with 100 showing a much lower risk.

How a business credit score is calculated

Several different factors calculate your business credit score; if one of them is neglected and not dealt with, it can result in bad credit ratings overall.

Size of company

The size of your company plays a part, but this shouldn't make you feel you directly need to expand to gain better rates.

Knowing the number of people you employ is a great way to become more familiar with your business. Small companies should be aware of their own personal credit, too, as it may be reviewed for your business.

Payment upkeep

Struggling and failing to keep up with bills such as gas and electricity will have a detrimental effect on your credit score. Previously missed payments don't provide a good history to new suppliers.

Finance applications

Finance applications in the past will be scrutinised. If you have been refused credit before, this will be taken into account by suppliers wondering why other credit card companies initially denied you.

Credit history

Credit history will play a big part in your businesses credit check. If your company's director has been associated with a successful business in the past, it could have negative results.

How you can find out the credit score of your business

Checking your business credit score is easy and can be done by anyone free of charge. Visit a reporting agencies website and look up your business credit score. There are lots of business tracking agencies to choose from, with many giving in-depth reviews on the state of your credit. Three of the most popular are Equifax Business, Experian, and Dun & Bradstreet.

How your credit score can affect your business

Low credit scores will negatively impact your business, especially when it comes to energy suppliers, energy prices, and energy tariffs you may be searching for.

Don't know where to find the best energy deals? Just look to Business Energy UK. Here you can compare all deals that are available to you in under 60 seconds.

Higher energy prices

Your initial deposit could be greater than those with better credit scores if you're deemed high risk.

In some cases, your entire bill will cost more as your lending will be capped to a smaller amount meaning you will have to pay more each month.

Limited access to energy deals

Your limitations will also regard the kind of deals that are available to you. Having a poor credit rating will result in fewer deals being available to you.

The best deals will only be available to people with a better credit score as they will be a lower risk for business energy companies.

Limited access to energy suppliers

If your credit score is really low, some business energy supplies may not even work with you.

As a new customer who is switching over, even though you may have built a good rapport with your existing energy supplier, bad credit can still affect your eligibility.

Ways you can improve your business credit score.

If you do have a bad business credit score, there are a few ways that you can improve it;

Pay your bills on time:
One of the best ways to improve your credit rating is to pay your bills on time. Failing to do so will result in your business credit rating falling, with anything else you do becoming totally void of benefits due to you still being a debt risk.

Build credit accounts with energy suppliers:
Working with certain suppliers can help you build good relationships with them. An established credit account will show on your file, and the more positives you have the better it will reflect.

Insert your own positive payment experiences:
Not every vendor you work with will supply payment data with your business credit reporting agencies, but this doesn't mean you can't add them yourself. Trade references can be added manually to your business and personal credit score. The more positive payment interactions you have on your score, the better!

Dispute any errors:
Any errors and inquiries can be disputed with your business credit card suppliers and your credit agency. Negative feedback that shouldn't be there can be removed from your record, ensuring that your score is no longer suffering.

When your credit has been improved, it might be a good time to find the best business gas and electricity prices. Use the Business Energy UK comparison tool to find the best deals from suppliers around the country.