Strengthening Your Credit Profile to Support Cash Flow and Growth

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Last month, Lyanne hosted a joint webinar with Alex Bond from Capitalise. Some of the discussions have gained more significance in light of the new headlines calling for tax increases to help with the government deficit. Unfortunately, this could mean further cash flow stress for both individuals and businesses.

One of the areas we talked about was the Capitalise Capital Report. Alex has provided an example report with some brief annotations, so we thought we would share how we use it with clients.

This report can be used directly for your business. We typically run it for clients who are thinking about taking out finance, as it helps to assess credit score and highlight risk factors affecting it. These can then be worked on in advance of any funding application, or even as part of an internal tender process. 

Sometimes it is as simple as making sure accounts are filed with Companies House well ahead of the deadline. Submitting them at the last minute, even if technically on time, can be viewed negatively. Similarly, the closing bank balance compared to the previous year can influence the score.

The business performance section is linked to data at Companies House, but we can also connect it to Xero, Sage, or QuickBooks. This gives more detailed and up-to-date information in any reports we generate for you, making it easier to see if the actions you are putting in place are having the desired effect.

The payment performance section shows how your payment history appears to anyone running searches on your business. It also benchmarks you against the average for your industry.  This can be invaluable if you are seeking new suppliers or looking for funding. The report also includes details of any CCJs, which is another key factor lenders and partners look at.

Clients have also asked us to run these reports on their customers and suppliers. Having this type of information helps when setting credit limits, deciding whether to ask for upfront payment, or assessing risks in your supply chain. Sometimes it provides more insight than Companies House accounts alone, particularly around CCJs and payment performance.

 

Case Study 1: Credit Review Boosts Cash Flow and Unlocks £20,000 Loan

To illustrate how this report can make a difference, here’s a real-life example Alex has shared with us:

• The Challenge: A UK-based development company was struggling with cash flow due to delayed client payments and was unaware of an unpaid invoice affecting their credit profile. Their credit score stood at 45/100, with a credit limit of £25,000 – both below lending thresholds.

• The Solution: Their accountant reviewed the company’s credit report and identified the issue. Once the overdue invoice was settled, they introduced the business to Capitalise’s Credit Review Service. Updated financials were submitted to Experian for reassessment.

• The Outcome:
  • Credit score improved: from 45 to 52
  • Credit limit increased: from £25,000 to £45,000
  • The company became eligible for a £20,000 working capital loan
  • The loan was discreet and allowed the business to retain control of their credit management

• Key Impact: By addressing credit issues early and accessing tailored funding, the business stabilised its cash flow and set a strong foundation for future growth.

This example shows how even a small change in credit profile can open up new funding options.

 

Case Study 2: Tech Firm Unlocks Growth Through Credit Review

The Capital Report can also be the starting point for the credit review service – a more detailed dive into what is affecting your rating and how it can be improved. Here’s another example that highlights the impact:

• The Challenge: A UK-based technology services company working with high-performance tech – Including AI and AR – faced challenges due to the high cost of their equipment, often ranging from hundreds of thousands to millions of pounds. With a low credit score of 31/100 and insufficient trade credit, the business was restricted from working with larger customers and distributors.
• The Solution: The business turned to their accountant, who referred them to Capitalise’s Credit Review Service. This service helped the business understand and improve their credit profile. By submitting additional supporting documents to Experian, their score was reassessed.

• The Outcome:
  • Credit score jumped from 31 to 80/100
  • Trade credit limit increased by 104%
  • Business can now transact at a higher scale, negotiate better terms, and pursue larger growth opportunities

• Key Impact: With improved creditworthiness, the business gained the confidence and financial flexibility to scale in a capital-intensive industry.

 

How We Can Help

If you’d like us to run one of these reports for your business, or if you feel your credit score may be holding you back, please get in touch with the team.

 

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