The connection between your business credit score and energy pricing is one not to be ignored. Your business credit score will determine who your supplier is, the range of suppliers you can choose from, the type of deal you can get and even if you can invest at all. It is important you have a good credit score in order to get the cheapest offers. We explain what your credit score is, how it affects your energy pricing and what you can do to improve it.
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Your business credit score is different from your individual one. This score is based on how likely it is you will go out of business within the next year.
Each business is rated on a scale of 1-100. Naturally, the higher your score is, the better. If you have a high rating it indicates a stronger financial position.
If your rating is 40 or more, you are likely to be able to get cheaper energy rates.
There are a lot of different things that affect your credit score. Some of these are:
Energy suppliers check your credit score in order to secure your payment. If there is a chance your payments could default, then you will not get the best prices.
Due to the fact that energy isn’t cheap and is used in large quantities, a failure to pay would be detrimental to their business.
Some sectors are classified as being a higher risk than others. For example, restaurants often have a high turnover of management which results in uncertainty. This is a worry for suppliers.
Having a less than perfect credit score is not good for your business especially if it is one that is deemed as high risk. By having a bad rating, you limit your choice of suppliers and energy tariffs.
Some energy suppliers simply won’t accept businesses with a low credit score or a poor credit history. Other suppliers may just prevent you from gaining access to their best business energy deals.
However, even if an energy supplier does accept your business despite the low credit score, they may still: