Importance of Business Credit – What you should Know

Importance of BCR

Business credit is often a much overlooked concept; however, its importance is not to be underestimated. Especially for small to medium enterprises (SMEs), acknowledging your business credit may just be the lifeline you need for the long-term. As an SME, your cash-flow is of the utmost importance, thus, in order to acquire competitive business loan rates and terms from potential suppliers, having a good business credit score is fundamental.

What is a Business Credit Score?
Your business credit score is an indication of your business’s potential reliability in terms of meeting its financial obligations. It is essentially a guide to how trustworthy, robust and successful you are to instigate business with. Whether you’re getting a loan or companies are extending credit to you, your credit score could be the deciding factor of a positive or negative outcome. Your score is made up of a variety of factors; here are a few of the main aspects that could affect your rating:

  1. Country of incorporation
  2. Date of incorporation
  3. Legal Form
  4. Shareholders/Owners
  5. Activity
  6. Capital (if required)
  7. Payment History
  8. Company Size
  9. External Risk Factors
  10. Length of Credit History
  11. Public Records (Bankruptcies & Judgements)
  12. Turnover
  13. Business Growth
  14. Profit/Loss
  15. Sector
  16. Trade References

These factors are pivotal to having either a positive or negative business credit score. It is also important to note that there are different industry standards which may vary your business credit score, depending on the region you are working in.

Why do you need a Business Credit Score?
There are a multitude of reasons to why you need a business credit score, however, we can focus on a few main points:

  1. Financing

Whether you are a SME or a large business, at some point, you may need a source of financing via a loan or line of credit. However, receiving finance may be difficult if you do not have a business credit score or you have a very low score because of a lack of data on your company being available.

     2. Legitimacy

If you want to do business, especially with larger companies, it is not uncommon for them to screen potential partners and vendors. How do they do this? By checking their business credit, looking for any potential risks and, furthermore, this can all be done in secret.

      3. Sustainability

This factor is especially relevant for SMEs in the sense that separating your personal and business finances can help your company in the long term. If you keep these two separate you will find it easier to track business expenses, make it easier to manage your taxes and filter out any interest differentiation between business and personal. The importance of business credit reports is not to be overlooked and this factor of easier accounting plays an essential role. Additionally, if you do not separate your business credit line from your personal credit line you may be subject to add-on implications. This means that if you are relying on only personal credit to support your business and your business becomes at risk, your personal credit score will be negatively impacted.

How can you check your Business Credit Score?
There are online credit agencies that will conduct fresh and detailed reports on your company and, consequently, provide you with a report. Depending on how much you want to pay, you could download a report on your company, or order a fresh investigation. The company may contact you for more information if they don’t have enough to make a detailed credit analysis or if they wish to verify that the information they do have is still up to date.

The more information you provide to credit reference agencies, the more robust the credit scoring will be – though credible agencies will always verify the information you provide so do make sure to be honest. If you purchase a report on your company and see that the information contained therein is incorrect, you can ask that information be corrected and/or brought up to date.

Why not search for your company now on and see what information we hold? You can download a database credit report for as little as €19 or if you don’t find your company listed, contact to request a fresh investigation or complete our questionnaire to submit your company data for a free analysis.

While you’re here make sure to check out the importance of company credit reports 

Written By Jack Evangelides, Marketing Assistant


*** The sole purpose of the article above is to generate public discussion, it has no intention to constitute legal advice. ***

Trade Rate: Join the Global Action for Prompt Payments 

How often have you been left frustrated by late payments? Wouldn’t it be great if you’d have known in advance and been financially prepared? Would you even trade with a prospect that you already know doesn’t adhere to agreed payment terms? 

Cedar Rose – who have been providing credit reports on MENA companies for 21 years – is introducing the Trade Rate scheme, so business owners and credit managers can anonymously share their collective voice.

In the business world, time is of the essence, but Cedar Rose believes that allowing companies to rate their customers’ payment performance is both fundamental and lacking within the credit sector. We are delighted to announce the release of our newest innovative service – Cedar Rose Trade Rate. With this introduction, we invite anyone who finds their customer listed on our website to rate their payment experience at any time. Through our new easy-to-use online rating tool at you can now create informed ratings in less than two minutes with the greater benefit of providing reliable data for others to access.

This initiative aims to provide a more efficient and robust credit reporting service. Cedar Rose will use this information to help others make the safest decision possible. Once verified and approved by our team of analysts, average ratings will be displayed anonymously in our company credit reports for anyone to purchase online. By joining forces, business people around the world can help each other to make better informed choices about whether or not to extend credit and on which terms.

Using a simple star scoring system you rate your customer from 1 to 5 stars depending on whether their invoices were paid on time:





You can decide whether or not to add more details and a comment in the Advanced Rating form, choosing to remain anonymous if preferred.

This new and innovative scheme provides an extra level of security when conducting business. Cedar Rose hopes to stamp out the late payment culture and, at the same time, increase the amount of information available in order for businesses to make robust and informed judgements.

Stay tuned in to our newsroom for follow up articles on the latest initiatives, brought to you by Cedar Rose.

Written by Christina Massaad, Managing Director

*** The sole purpose of the article above is to generate public discussion, it has no intention to constitute legal advice. ***