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  • FIRST POST
    • chipshopboy
    • By chipshopboy 28th Feb 17, 10:35 PM
    • 8Posts
    • 0Thanks
    chipshopboy
    No credit score for my small business
    • #1
    • 28th Feb 17, 10:35 PM
    No credit score for my small business 28th Feb 17 at 10:35 PM
    I run, with my partner, a small retail business. We've recently had cause to require a credit score but it seems that none of the agencies have any information about us at all. We currently don't use a credit card and pay all our invoices in cash or by debit card, either upfront or within a week of receiving any goods. The business doesn't have any debt (and never has).

    I've suggested to the interested party that they use my personal score as, being a partnership, we are personally responsible for any debt incurred but this isn't of any use to them.

    Any suggestions as to how we can get on the credit score radar both quickly and positively?

    Thanks in advance!
Page 1
    • DCFC79
    • By DCFC79 1st Mar 17, 9:54 AM
    • 29,343 Posts
    • 18,552 Thanks
    DCFC79
    • #2
    • 1st Mar 17, 9:54 AM
    • #2
    • 1st Mar 17, 9:54 AM
    I run, with my partner, a small retail business. We've recently had cause to require a credit score but it seems that none of the agencies have any information about us at all. We currently don't use a credit card and pay all our invoices in cash or by debit card, either upfront or within a week of receiving any goods. The business doesn't have any debt (and never has).

    I've suggested to the interested party that they use my personal score as, being a partnership, we are personally responsible for any debt incurred but this isn't of any use to them.

    Any suggestions as to how we can get on the credit score radar both quickly and positively?

    Thanks in advance!
    Originally posted by chipshopboy
    I'm afraid you have it wrong, there is no score you are looking for. Credit scores don't guarantee loans or any credit, they mean diddly squat, nadda.

    If anything, the interested party could use your credit history but as you found out its not of any use.

    Whats this credit score radar you speak of ?

    Have you seen the radar vans round ?

    Apologies for my reply OP.
    Last edited by DCFC79; 01-03-2017 at 12:24 PM.
    Je Suis Charlie
    • SeanG79
    • By SeanG79 1st Mar 17, 10:08 AM
    • 848 Posts
    • 380 Thanks
    SeanG79
    • #3
    • 1st Mar 17, 10:08 AM
    • #3
    • 1st Mar 17, 10:08 AM
    What I think the OP might be referring to is a CAIS score, which is often part of an underwriting process for commercial lending.

    If there is no credit, there can be no CAIS score as the CAIS information is based on information in a database shared by lenders.

    What credit are you trying to obtain OP, as it unusual for a lender not to take personal credit into account for credit for a partnership?
    • KoshB5
    • By KoshB5 1st Mar 17, 10:12 AM
    • 48 Posts
    • 23 Thanks
    KoshB5
    • #4
    • 1st Mar 17, 10:12 AM
    • #4
    • 1st Mar 17, 10:12 AM
    The UK CRA's only hold consumer financial information, commercial credit risk for businesses is undertaken by organisations like Dun and Bradstreet (https://www.dnb.co.uk/)
  • National Debtline
    • #5
    • 1st Mar 17, 10:13 AM
    • #5
    • 1st Mar 17, 10:13 AM
    Hi

    As far as I’m aware a partnership business wouldn’t have it’s own credit history unless it’s a Limited Liability Partnership. I believe this may possibly be different in Scotland.

    You can check this with Business Debtline - www.businessdebtline.org

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • SeanG79
    • By SeanG79 1st Mar 17, 10:20 AM
    • 848 Posts
    • 380 Thanks
    SeanG79
    • #6
    • 1st Mar 17, 10:20 AM
    • #6
    • 1st Mar 17, 10:20 AM
    Hi

    As far as Iím aware a partnership business wouldnít have itís own credit history unless itís a Limited Liability Partnership. I believe this may possibly be different in Scotland.

    You can check this with Business Debtline - www.businessdebtline.org

    James
    @natdebtline
    Originally posted by National Debtline
    At work I use Experian Business (previously Risk Disk) and Creditsafe and both definitely provide a "score" for partnerships and this is separate from the partners personal credit searches. I also know that the the Experian Score (CAIS score) is definitely taken into account by more than one commercial lender.
  • National Debtline
    • #7
    • 1st Mar 17, 10:24 AM
    • #7
    • 1st Mar 17, 10:24 AM
    At work I use Experian Business (previously Risk Disk) and Creditsafe and both definitely provide a "score" for partnerships and this is separate from the partners personal credit searches. I also know that the the Experian Score (CAIS score) is definitely taken into account by more than one commercial lender.
    Originally posted by SeanG79

    Thatís interesting and useful to know. Thanks for the information Sean.

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • chipshopboy
    • By chipshopboy 10th Mar 17, 10:58 PM
    • 8 Posts
    • 0 Thanks
    chipshopboy
    • #8
    • 10th Mar 17, 10:58 PM
    • #8
    • 10th Mar 17, 10:58 PM
    @DCFC79

    Hi - maybe should have explained more fully.

    I don't want to get a loan or obtain credit. We are trying to change our electricity suppliers from one company to another. The new suppliers we've chosen have emailed me to say that they cannot find a credit rating (not a credit history) for us and, therefore, are unwilling to take the risk of taking us on as customers (although, they have accepted me as a private customer). here's a quotation form their mail;

    "unfortunately our current policy on this is quite strict: if we cannot get a credit rating, we cannot take on a business as customer. We do this mainly because we are still a relatively small business ourselves, but we might release this constraint as we grow.

    I am sorry for not being able to proceed with your switch."

    Experian do provide credit scores for sole traders and partnerships (or non-limited, non-registered businesses.) As a new user, I can't link to the search page they provide to check if they hold a record of your business, and it doesn't readily show up if googled but, if anyone's interested, they can do a bit of rummaging on their site.

    The self-employed guy who lives twelve doors away from me came up but not mine (my home address is registered with HMRC as that of the business too).

    The only reason I have for wanting a score is so we can change to a slightly cheaper supplier of green electricity. As we currently seem to be "off their radar", I wondered if there was any way of getting on it.
    Last edited by chipshopboy; 12-03-2017 at 5:20 PM.
    • chipshopboy
    • By chipshopboy 10th Mar 17, 11:02 PM
    • 8 Posts
    • 0 Thanks
    chipshopboy
    • #9
    • 10th Mar 17, 11:02 PM
    • #9
    • 10th Mar 17, 11:02 PM
    @National Debtline, Sean G79

    Hi and thanks for this response. As I mentioned in my earlier post, Experian do provide scores for non-limited and non-registered businesses, as Sean says, but they seem to have no record of mine. The purpose of the thread isn't to find out how to get my credit score from them (or any other agency) so sorry to all if I gave that impression, but rather on how to get a credit score at all!
    Last edited by chipshopboy; 12-03-2017 at 5:22 PM.
    • chipshopboy
    • By chipshopboy 10th Mar 17, 11:07 PM
    • 8 Posts
    • 0 Thanks
    chipshopboy
    @SeanG79

    Thanks for the offer of help.

    I can see though, that I haven't explained myself very well, so apologies for that. I don't want to obtain credit of any sort, I want to know how my business gets a credit score/rating attached to it as we currently don't appear to have one.

    It may be, as you mention, that we just don't have any credit history, having no debt and paying for almost everything up front.

    I do though agree with you that it seems strange that they won't take my personal credit history into account as, not being limited, I'm responsible for any debt accrued by the partnership anyway.
    Any ideas gratefully received!
    Last edited by chipshopboy; 12-03-2017 at 5:26 PM.
    • DCFC79
    • By DCFC79 10th Mar 17, 11:52 PM
    • 29,343 Posts
    • 18,552 Thanks
    DCFC79
    Would lenders see the score, I think they would see the history jus tlike with personal credit histories but could be wrong.
    Je Suis Charlie
    • Rothstein
    • By Rothstein 11th Mar 17, 3:19 PM
    • 90 Posts
    • 11 Thanks
    Rothstein
    Paydex SCORE

    at least someone has heard of D&B !!
    • chipshopboy
    • By chipshopboy 12th Mar 17, 5:19 PM
    • 8 Posts
    • 0 Thanks
    chipshopboy
    I have already tried to obtain a Nav score form Dun and Bradstreet through the free service they offer. I think it may only be for customers in the US as, when creating an account, it doesn't allow me to enter a UK postcode.

    However, there's also the possibility that this agency, as well as Experian, may not hold details for our business anyway.

    My son has suggested using a credit, instead of a debit, card to make purchases. Seems like a reasonable plan as this would give them a credit history, which is what we seem to lack, to check. Anyone have any thoughts?
    • sonstream
    • By sonstream 13th Mar 17, 9:22 AM
    • 129 Posts
    • 41 Thanks
    sonstream
    if you want an experian non-ltd business report you can get them via post for £2 link is http://www.experian.co.uk/consumer/statutory-report.html scroll down to where it says order and click the right hand tab that says order via post non-limited company there's a form you need to download and send back but if they don't have enough information to generate a report/score then they can help you start getting one created.
    • chipshopboy
    • By chipshopboy 24th Mar 17, 10:25 AM
    • 8 Posts
    • 0 Thanks
    chipshopboy
    @sonstream

    Thanks - that's a really useful suggestion. Makes a lot of sense. Have printed out the form to send off and will let you know the outcome.
    Last edited by chipshopboy; 24-03-2017 at 10:51 AM.
  • National Debtline
    My son has suggested using a credit, instead of a debit, card to make purchases. Seems like a reasonable plan as this would give them a credit history, which is what we seem to lack, to check. Anyone have any thoughts?
    Originally posted by chipshopboy
    This is often mentioned as an effective way for individuals to build up a credit history, so may also work for your business. As long as you pay the credit card off in full each month so that you don’t pay interest it seems to be worth a try.

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • MoneySaver123
    • By MoneySaver123 25th Mar 17, 8:06 PM
    • 36 Posts
    • 4 Thanks
    MoneySaver123
    Maybe try opening an account with Viking or similar and order some small items for the office?
    • chipshopboy
    • By chipshopboy 26th Mar 17, 1:19 PM
    • 8 Posts
    • 0 Thanks
    chipshopboy
    @Moneysaver1, @NationalDebt

    We have accounts with a couple of wholesalers that we don't pay in advance of receiving the goods - but always pay very promptly with a debit card. Guess we get a credit card and use that to pay them, as suggested by NationalDebt. Thanks both.
    • MEM62
    • By MEM62 27th Mar 17, 11:03 AM
    • 1,221 Posts
    • 865 Thanks
    MEM62
    No only does your business not have a credit 'score' neither do you as an individual. These are nothing more than numbers that are randomly generated by CRA's.

    If you are a registered business and submit your accounts on an annual basis there are ways for potential lenders to gauge your credit standing.
    Last edited by MEM62; 27-03-2017 at 1:00 PM.
    • chipshopboy
    • By chipshopboy 29th Mar 17, 5:42 PM
    • 8 Posts
    • 0 Thanks
    chipshopboy
    @mem62 As mentioned previously, we are not looking to get a loan of any sort. Also as previously mentioned, we are a non-limited business and not registered with Companies House.

    Would it be more acceptable if I had asked how we built up a credit history so that a CRA could randomly generate a number we could pass on to the electricity company in question and get accepted as a customer?

    Because that's what I actually need to know and, thankfully, other members have posted apropos information that might actually be helpful.
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