Hi everyone! I am Nishi Patel from Northants Accounting and in today’s video I want to give you a few
tips and tricks on how to actually improve your company’s credit rating.

So, a lot of people are aware that they themselves have a credit rating and a lot of people just going to
experience some other agencies and they can actually check their own credit rating, but not a lot of
business owners are aware that they can be housed less independent of them.

Reasons they might want to good credit in their company is if they’re looking to expand and they need
to borrow money. If they’re relying on credit terms with their suppliers or…if they’re looking to doing
things like invoice financing, and in those situations it’s actually really important to have good credit
rating in your company.

And a lot of people, every year they hire an accountant and they get that accountant to submit accounts
to Companies House and HMRC and as long as that is done, they’re happy. And what they don’t always
realize is that those accounts do not just go to Companies House and HMRC, a lot of other agencies are
actually taking information from those accounts and in particular; credit referencing agencies are a
really good example of this.

So… a lot of agencies will look at company accounts and one of the key things that we’re looking at is a
shareholders funds figure so one year, a company might have a certain amount of money left in it after
its profits and dividends and everything is paid out but the next year it might have a different amount of
money left in it after all the dividends and profits and everything is paid out.

So, what happens is a lot of this credit referencing agencies, they look at various things like the year on
year movement in terms of the overall value of your business; which you can’t tell from your accounts.
They will also look at the sort of things like the kind of liabilities you’ve got in your business. Whether
you’ve already got loads of other loans …

And…people you owe money too. They will also look at things like your bank account balances at the
end of the year and how much money is actually owed to you. So, in addition to that, they can also
factor in things like how close to your accounts submission deadline you actually submit those accounts
or if they over-due.

Obviously getting accounts in late is not good for your credit rating because it makes
your business look unreliable.
And there’s like a, various other factors, they actually factor in.

So what I want to help you people understand via this video is that if having a good credit rating for your
business is important to you, then you need to tell you accountant about it at the earliest opportunity.
Its…no one will ever manipulate your accounts but there are various course of actions and accounting
treatments that can be applied to actually improve your company’s balance sheet, which in turn will
improve your company’s credit rating.

So if you’re thinking about borrowing money through your company in the next couple of years, if you’re
thinking about getting new suppliers or you want better deals with them, with better credit terms; then
start talking to your accountant today about things you can do to actually improve your company’s
credit rating.

If your accountant can’t help you, then get in touch with me and I’ll talk to you about your options