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Check your Credit Score
How-to Guide checking your Credit Score and
where you sit on the score board
A strong business credit score can improve your company’s chances of loan approval and help attract lower interest rates but negative financial activity like defaults or late payments will lower your score and can make it harder to be approved for finance. We have put together a credit score rating board so you can see where you sit and find ways to improve your score and current financial positioning.
Your business credit score is a number between 1 and 1,200. It’s calculated based on a number of factors such as your company’s credit information, number of credit enquiries and time in operation. The higher your score, the more desirable you will look and potentially added benefits such as better rates, bigger loans and quicker loan approvals.
Your score is calculated based on numerous factors including:
- Number and type of previous credit enquiries
- Amount of time your business has operated
- Payment history including any defaults, judgments or external administration
- Business structure, directors and other company details
It’s important to understand where your business is sitting financially. If your score is at the higher end of the spectrum, you can focus on maintaining it. If it isn’t quite up to scratch, identify any factors that may be dragging it down.
Critical
You should improve your score
0-200
-
You may have issues with your application
-
Potential Rate
49.99% -
Minimum Turnover
$5,000 -
Loan Size
$5,000 - $20,000 -
Term Options
2.5 - 5mths -
Min Time in Business
2 - 5mths -
Documents Required
* Identification
* 2-5mths Bank Statements
* Financials maybe required
Look at ways you can improve your score so you can reduce application issues
Low Score
You are below average
200-300
-
See how you can improve your score
-
Potential Rate
39.99% -
Minimum Turnover
$6,000 -
Loan Size
$5,000 - $100,000 -
Term Options
2.5 - 7mths -
Min Time in Business
2 - 6mths -
Documents Required
* Identification
* 2-6mths Bank Statements
* Financials maybe required
Your Application may require additional documentation speak to our specialist for help
Average Score
You are in a great position
400-600
-
You are in a great position
-
Potential Rate
25% - 30.99% -
Minimum Turnover
$10,000 -
Loan Size
$5,000 - $150,000 -
Term Options
2.5 - 12mths -
Min Time in Business
2 - 6mths -
Documents Required
* Identification
* 2-12mths Bank Statements
* Financials maybe required
You are looking great, our team can chat with you on what the best loan solution is
Excellent
You're eligible for our platinum rates
600+
-
Your application should be easy peasy
-
Potential Rate
19.99% - 24.99% -
Minimum Turnover
$75,000 -
Loan Size
$150,000 - $500,000 -
Term Options
6 - 15mths -
Min Time in Business
3 years -
Documents Required
* Identification
* 12mths Bank Statements
* Additional Financials
Your score will give your great rates and your application should be quick and easy
Helpful Tips
A strong business credit score can improve your company’s chances of loan approval and help attract lower interest rates but negative financial activity like defaults or late payments– will lower your score and can make it harder to be approved for finance. So we have put together 10 ways to protect your business credit score
Check your Credit Score
It’s important to understand where you sitting financially. If your score is at the higher end of the spectrum, taking out a loan will be easier.
Free up Cashflow
Extra cash and savings not only frees up your cash flow for emergencies, bills & repayments but also offers better borrowing capacity
Assess Debt
If you’re drowning in overdue notices, try to prioritise the most essential payments first. This should typically include tax payments, staff salaries, utility bills and rent.
Contact Creditors
If you can’t meet your repayments, be upfront with your bank or lender as soon as possible. Most lenders will understand and provide alternative options.
Avoid Creditcard Applications
Each credit application you submit is recorded in your file and affects your credit score. Purchase of credit card purchases will raise your credit utilisation rate, which accounts for 30% of your credit score.
Become an Authorised User
An authorized user is an additional cardholder on someone else’s credit card account. When you’re added as an authorized user to someone else’s credit card account, you can piggyback off their credit.
Pay Off Debt
Payments that are delinquent (even if only by a few days) can have a negative impact on your credit score. Reducing what you owe will increase your borrowing status.
Dispute Credit Errors
Each credit application you submit is recorded in your file and affects your credit score. Purchase of credit card purchases will raise your credit utilisation rate, which accounts for 30% of your credit score.
Credit Builder loans
Credit builder loans are loans with an easy approval process that are designed specifically for people who need to build credit because they don’t yet have a strong credit history or because they have had problems with their credit in the past.
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