Checking and improving business credit score.

anticlaus105

I have my own business that has operated since 2006. In the early days I had a business loan which was paid off years ago. Using WebCheck I could always see a "mortgage" registered against the business. I thought this was for my mortgage on the business property, even though it is in my name. Last year the charge was released against the property and was lifted from the title but I noticed the charge was still showing on Webcheck. I then realised it was a the loan settled over 10 years ago, so I filled in a form to register it as settled.

Earlier this month I logged into the HMRC tax account to see if I had any tax coding's. It showed I owed just over £100 PAYE dating back to last April/May. It appears an employment allowance EPS didn't go through properly (a known glitch for last year apparently). I have since sent another EPS and this outstanding balance has now disappeared. I was never informed of the outstanding amount and if I hadn't logged into the tax account would still be non the wiser.

Another recent event is I switched my residential mortgage for my home.

I have no borrowing for the business, no overdraft and have never had one and no business credit cards etc. I've never defaulted on any accounts.

The reason I mention all this is earlier this year I applied for an EV lease through the business and was turned down. There is enough in the bank account to cover the EV lease several times over, but of course you are not allowed to pay up front.

I'm just wondering why it appears we are not good for credit, if I can check why, and if there is anything I can do to improve it? Could something above have been the issue? Could a lack of credit history be a problem? We do have lots of credit accounts with suppliers and telephone/BB etc. Are business credit scores similar to personal? Would taking a business CC be worthwhile to improve the "score"? I could use it to settle some accounts and the pay the balance off.

Grumpy_chap

Often, for a vehicle lease for a privately owned Ltd Co, a personal guarantee will be required.

Nothing would stop you from simply paying the cash in the bank out of the business.

As you are after an EV, the business can buy outright and get 100% first year write down.

Services such as D&B allow you to see the financial data that a lender can see for the Ltd Co.  There is a charge.

anticlaus105

Thanks. I did ask my accountant who said to offer a personal guarantee, but they refused this. I do wonder if it was a "bait and switch" as it was quite a good deal and after the refusal they said they could probably get a deal through with another funder, but it would be more.

Before I try again I want to make sure nothing is amiss.

Whilst I could probably buy the EV in question outright (was a cheaper EV) my worry is depreciation over a 2 year term. With the EV market evolving and battery tech improving, current models may plummet in value if there is a significant jump in battery tech over the next couple of years. At least with a lease the "depreciation" is fixed.

If it doesn't work out I will just buy or lease another ICE personally depending on available deals.