But for those starting up their own new business, there is still the issue of funding to manage cash flow from month to month and getting credit for supplies and services. And if the business is very new, lenders will look at the personal credit history of the owners in order to be able to make a sensible risk assessment.
Equifax believes that many small business owners don’t realise the significance of their own personal credit record when starting their new venture. “It is surprising how so many people starting up in business don’t even get a copy of their personal credit file to check on how they will look to potential lenders,” confirmed Neil Munroe, external affairs director, Equifax.
“In the absence of any historical information about the new business, this is exactly where lenders will turn to make a credit risk assessment. We, therefore, believe it is absolutely crucial that the new generation of entrepreneurs are aware of exactly what information on their credit file will impact on their ability to obtain credit and how to ensure they have the best possible credit rating.”
The Equifax Credit Report, with the facility to access credit information for the first 30 days free, gives new and small business owners a valuable insight into their credit status. Accessible simply by logging onto www.equifax.co.uk it is designed to help individuals understand their credit file and see what lenders see to assess new credit applications.
If the customer does not cancel before the end of the 30 Day Free Trial, the service will continue at £6.99 per month, giving them unlimited online access to their credit information and weekly alerts on any changes to their credit file. It also includes an online dispute facility to help them correct any errors on their credit file simply and quickly.