When lenders assess a finance application, they pull data from credit reference agencies on both the business and the owners.
Credit reference agencies hold information which falls under three main headings:
- Positive data including how long you’ve held an account with the same bank, finance that has successfully been repaid and an up-to-date picture of existing credit facilities
- Negative data including missed repayments, going over agreed credit limits, defaults and multiple finance applications in a short space of time
- Red flags including County Court Judgments (CCJs) where debts have gone unpaid, and bankruptcy
Falling behind on credit repayments will adversely impact your ability to obtain credit in the future, therefore it’s important to keep on top of your finances and resolve any issues as soon as you become aware of them.
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