Category Archives: Finance News

Finance News, Investment News

The Crucial Role of Transparent Financial Research in Real Estate Investments

From seasoned market veterans to newcomers eager to carve out their niche, the appeal of real estate property investments is universal. However, real estate, like all investment domains, is fraught with challenges, from market volatility to unforeseen external factors that can sway property valuations.

In the UK, 2023 has seen a notable shift. The number of homes sold is projected to decline to its lowest in over a decade, with house sales expected to drop by 21% year-on-year, amounting to approximately 1 million. This decline is primarily attributed to the rising cost of mortgages, deterring potential homebuyers. 

In the midst of such complexities, how can investors navigate with confidence and precision? The key to success is transparent financial research. This comprehensive research transcends mere statistical data, offering a lucid, impartial perspective on the real estate landscape, encompassing current market trajectories, emergent growth sectors, and areas potentially on the decline.

In the following article, we aim to provide readers with a deeper understanding of the indispensable nature of transparent financial research in crafting a robust property investment strategy.

Harnessing Expertise in Property Finance 

Delving into the world of property finance, including development finance, requires more than just knowledge; it calls for genuine expertise. Consider working with a property finance firm with a longstanding history in the industry, as their sustained presence signifies more than just longevity; it’s a mark of their adaptability, skill, and dedication to helping clients achieve their financial aspirations.

In addition to that, look for firms that offer a wide range of services, covering everything from short-term financing and development finance to various mortgage solutions, and cater to diverse financial needs. Their extensive network, which includes both mainstream and specialized lenders, ensures clients receive the best possible rates.

Foundations of Astute Investment Decisions

Evaluating Intrinsic Value

Every investment proposition is underscored by its inherent value. Transparent research serves as a guiding light, meticulously detailing a property’s current market standing, potential for appreciation, and areas of possible depreciation. 

These insights empower investors to make decisions anchored in reality, ensuring that their capital is allocated judiciously to avenues that resonate with their financial objectives.

Decoding Market Dynamics

The real estate sector is akin to a living entity, perpetually evolving in tandem with economic, technological, and societal tides. Transparent research offers a panoramic view of these shifts, equipping investors with the acumen to make strategic, timely decisions. By understanding these dynamics, investors can position themselves advantageously, capitalizing on emerging trends and sidestepping potential pitfalls.

Anticipating Returns

The cornerstone of successful investing lies in data-driven, informed risk-taking. Transparent financial data enables investors to craft accurate return projections, ensuring alignment between financial ambitions and a property’s projected trajectory. This predictive capability ensures that investors can calibrate their expectations, optimizing their portfolios for maximum yield.

Strategizing Risk Mitigation

The property investment landscape, while promising, is not devoid of risks. Transparent research acts as a sentinel, identifying potential challenges, be they legal intricacies or market fluctuations. Such foresight allows investors to fortify their strategies, bolstering confidence in their investment choices. By pre-emptively addressing these challenges, investors can ensure the longevity and resilience of their investments.

Upholding Regulatory Compliance

The labyrinthine regulations governing property investments necessitate meticulous adherence. Transparent research serves as a compass, ensuring that all investment undertakings are compliant, thereby safeguarding investors from potential legal entanglements.

In an era where regulatory scrutiny is intensifying, this commitment to compliance is paramount, ensuring that investments are not only profitable but also ethically and legally sound.

Conclusion

As the industry undergoes multifaceted transformations, influenced by global economic paradigms, technological innovations, and evolving societal predilections, the imperative for rigorous, objective financial analysis becomes paramount. This analytical framework, steeped in empirical rigor, furnishes investors with a strategic blueprint, elucidating potential avenues of opportunity while concurrently signposting potential areas of caution. For the seasoned investor, it serves to validate and recalibrate investment strategies, offering avenues for portfolio diversification. 

For new investors, it provides a lucid, structured pathway to traverse the labyrinthine complexities inherent to the real estate domain. Moreover, as the emphasis on sustainable and ethically aligned investments intensifies, transparent research will be pivotal in discerning properties and ventures that resonate with these contemporary imperatives. 

Finance and Banking, Finance News

Evolving Markets: The Promise of Tokenize Xchange

Explore the transformative realm of financial markets with the emergence of Tokenize Xchange. This article unveils the disruptive potential of blockchain-based tokenization, reshaping investments and trading in an ever-evolving landscape. Tokenize Xchange exemplifies the promise of evolving markets, a sentiment mirrored by the success of online platforms like Bitcoin Prime official website.

 

The Mechanics of Tokenize Xchange

In the realm of modern finance, the mechanics behind Tokenize Xchange are at the heart of its transformative power. At its core, Tokenize Xchange leverages the revolutionary technology of blockchain to reshape the way assets are traded and ownership is established. This section takes a deep dive into the intricate mechanisms that drive Tokenize Xchange’s operations and explores how they are redefining accessibility, transparency, and security.

Tokenize Xchange facilitates the conversion of physical and traditionally illiquid assets into digital representations, or tokens. These tokens are powered by blockchain, a decentralized and immutable digital ledger. The process begins with the careful verification and authentication of the underlying physical assets. Once verified, these assets are divided into digital shares, each represented by a unique token. This fractional ownership model enables a broader range of investors to participate in markets that were previously reserved for a select few.

At the core of Tokenize Xchange’s efficiency and reliability are smart contracts. These self-executing contracts are programmed with predefined conditions and execute automatically once these conditions are met. Smart contracts eliminate the need for intermediaries, reducing transaction costs and the potential for disputes. When a buyer and seller agree on a trade, the smart contract verifies the availability of assets, executes the trade, and transfers ownership seamlessly. This process ensures transparency, prevents fraud, and accelerates settlement times.

 

Tokenize Xchange’s architecture ensures that these smart contracts are tamper-proof and secure. Once a contract is established on the blockchain, it becomes part of an immutable record, making it resistant to alteration and ensuring the integrity of transactions.

In conclusion, the mechanics of Tokenize Xchange present a paradigm shift in the way assets are traded and ownership is established. By creating digital representations of assets and implementing smart contracts, this platform enhances accessibility, transparency, and security in financial markets. The utilization of blockchain technology ensures that transactions are conducted with efficiency and trust, laying the groundwork for a future where traditional barriers to entry are dismantled and globalized markets thrive.

 

Benefits and Opportunities

One of the most significant advantages is the enhanced liquidity that tokenization brings to traditionally illiquid assets. Through the fractional ownership model, Tokenize Xchange enables investors to own a portion of high-value assets that would otherwise be out of reach. This democratization of ownership fosters increased trading activity, thereby enhancing liquidity in markets that were previously stagnant.

Accessibility is another key benefit. Tokenize Xchange transcends geographical limitations, allowing investors from around the world to participate in markets that were once reserved for a select few. This globalized approach broadens the investor base and injects diversity into markets, contributing to a more resilient and dynamic financial ecosystem.

Furthermore, Tokenize Xchange operates with reduced intermediaries, translating to lower transaction costs. By utilizing blockchain technology and smart contracts, the platform automates trade execution and ownership transfers. This not only increases efficiency but also minimizes the risk of errors and disputes. Investors can trade directly with counterparties, streamlining the process and accelerating settlement times.

 

The opportunities presented by Tokenize Xchange are vast and multifaceted. Startups and businesses seeking capital infusion can explore tokenized funding as an alternative to traditional fundraising methods. This avenue can provide access to a global pool of investors who are keen on supporting innovative ventures. Additionally, the tokenization of real estate introduces the concept of fractional ownership, allowing individuals to invest in properties without the burden of full ownership responsibilities.

Tokenize Xchange introduces a range of benefits and opportunities that have the potential to reshape the investment landscape. From enhanced liquidity and accessibility to reduced intermediaries and novel fundraising avenues, this platform heralds a new era of inclusivity, efficiency, and innovation in the world of finance. As the financial ecosystem evolves, Tokenize Xchange stands as a bridge between traditional markets and the exciting possibilities of the future.

 

Conclusion

Tokenize Xchange stands as a beacon of change in the financial world, heralding accessible global markets and redefining ownership. The promise of blockchain-powered tokenization holds the key to a future where investment opportunities know no bounds.

 

 

 

FInance, Finance and Banking, Finance News

What You Should Know About Online Money Transfers to Ukraine

There are multiple reasons why this matter might be interesting for you. While some people would like to help their families, who stay and live in Ukraine, the goal of others is to assist different fundraising organizations to benefit refugees and other programs in the country.

The majority of international transactions aren’t restricted by the National Bank of Ukraine. When it comes to transferring money to Ukraine, the biggest ban is straightforward, given the ongoing war in the country. Card-to-card transactions from accounts registered in Belarus or Russia and made in corresponding currencies won’t be possible.

Popular Ways to Transfer Money to Ukraine

Overall, one of the ways to succeed in transferring money to Ukrainian accounts is to use an IBAN number. Alternative methods include SWIFT or card-to-card payments via international money transfer companies. Let’s analyze what stays behind SWIFT and IBAN standards, which are more widespread in the market:

  • If you are looking for safe transfer methods, SWIFT payments come first. However, they aren’t absolutely flawless. Please note they are normally associated with greater rates, unlike such international providers as Wie. Besides, making a single SWIFT transaction doesn’t reduce the potential number of parties involved. Up to three different establishments can be needed to operate and finalize the transaction, which can lead to extra fees and lower speed of delivery.
  • IBANs are connected to a particular bank account, which helps transactions be clarified faster. Still, there are countries where this format isn’t recognized as functional.

Work Smarter with Profee

Let’s make a brief comeback to card-to-card transactions. Although this option doesn’t seem entirely sufficient for international transfers, the right company will solve any occurring problems. From this perspective, Profee is a great choice to make your transfers simpler and more accessible. Here is how it works:

  • You don’t have to download any additional applications on your smartphone, although a free registration on the official Profee site will be required. There are several partners to choose from — SEPA, Apple Pay, MasterCard, and others.
  • Although you don’t have to open a new card at Profee, it doesn’t mean the overall process is less secure. On the contrary, the transfer from card to card like Visa doesn’t take a lot of time. Compared to alternative solutions that can last for days without satisfactory answers, it is a breeze.

Wrap It Up

It has never been simpler to send different amounts of money from your European account to a Ukrainian one. The range of currencies isn’t significantly restricted, so your general capacity is more than just satisfactory. With services like Profee, you can take the most out of instant and fee-free transactions and reach your objectives at the same time. By conducting additional research, customers gain more power to act wisely and more cost-efficiently.

Finance and Banking, Finance News, Pensions

Annuity sales are up but shop around for the best deal

Annuities are back in focus but it’s vital people don’t just get sucked in by the headlines and shop around for the best deal, warns Steve Butler, CEO at Punter Southall Aspire.

New data from the Association of British Insurers (ABI)[i] has revealed that sales of annuities surged 22% in Q1 2023 compared with the last quarter of 2022 – with 16,256 annuities bought – the largest number recorded since Q3 2019.

ABI also show more people are shopping around and switching provider for the first time since 2016, with more than 10,000 people buying an annuity from a different provider to their pension company, making up 64% of sales and totalling £847 million.

But ABI say one in three retirees are not switching from their existing pension provider and could be missing out on extra income[ii].

 

Steve said: “Annuities fell out of favour in 2015 when pension freedoms law created more flexibility in the retirement income market. In truth, rock-bottom interest rates at that time made them far less attractive in any case.

“Fast forward to 2023 and they make sense as interest rates rise, offering some certainty in a very uncertain time. Broadly, as interest rates rise, so does the value of an annuity. They are now at their highest level for 14 years, which does make them look more attractive.

“Their appeal is that they offer a guaranteed income for life which is a vital part of retirement planning. However the difference between the best and worst deals can be tens of thousands of pounds over a lifetime, so people need to be careful when purchasing an annuity and not just get carried away as they are back in fashion.”

 

ABI highlights that the gap between the top and bottom providers has widened – with a healthy 65-year-old now able to secure nearly 14% more annual income by securing the best instead of the worst rate[iii].

 

Steve adds: “Whilst it’s encouraging that more people are shopping around our message remains the same – everyone buying an annuity should be checking EVERY annuity on the market. People should never accept just one quote from their existing provider out of misplaced loyalty.

“Technology has made it extremely simple to check the whole of the market and there is a wealth of guidance and tools out there, such as our online calculator Pension Potential which searches the entire market and can show people how much their pension can buy, making it easy to see the right deal for them.

“Shopping around can significantly boost retirement income and just like people are now used to shopping around for insurance we encourage them to do the same at retirement. It could result in literally thousands more in retirement income, for a few minutes spent searching.”

 

[i] https://www.abi.org.uk/news/news-articles/2023/5/annuity-sales-surge-after-turbulent-2022/

[ii] https://www.professionalpensions.com/news/4116689/sales-annuities-hit-highest-volumes-years

[iii] https://www.professionalpensions.com/news/4116689/sales-annuities-hit-highest-volumes-years

FInance, Finance News

Transition to paperless operations propels Swansea accountancy firm to rapid growth

The adoption of fully paperless practices and an expansion of its team have helped Lee Coombes Accountancy, a prominent provider of accountancy services in Swansea, to achieve significant growth in 2023.

Over the past year, it has seen a surge in demand for its services, driven by the rapidly changing business landscape and increased reliance on digital solutions. As a result, the company has expanded its team with several new hires, including additional accountancy and support staff.

In addition to expanding its team, Lee Coombes Accountancy has also moved fully paperless, streamlining its operations and reducing its environmental footprint. By eliminating paper documents, the company can now process and manage financial information more efficiently, while also reducing its reliance on physical storage space.

From April 1, it began operating fully paperless, and the decision to do so was to further diversify and modernise, as it already utilises several digital applications that have allowed it to improve its service by making accounting processes as simple as possible for its customers. In addition to this, it conducted a slight rebranding, by adding the word “digital” in green to its logo to signify this progressive change.

As part of its transition, Lee Coombes Accountancy also introduced a new client portal function to the website, allowing customers to access and store accounting information in an easily accessed and user-friendly place. The portal allows for the uploading of documents and is a core part of its digital transformation, helping to automate document sharing, digital signature technology, client onboarding and more.

Its growth and commitment to sustainability reflect its dedication to providing innovative and reliable accounting solutions that meet the evolving needs of modern businesses. Lee Coombes Accountancy is also an avid supporter of local sports teams as well as the Ospreys, and is the primary sponsor of Ospreys winger and local star, Keelan Giles.

Lee Coombes, Managing Director of Lee Coombes Accountancy, said:

“2023 has been a year of tremendous growth for us, and we are thrilled to be able to expand our team to better serve our clients and our new team members will play a critical role in maintaining this level of excellence.

“Our decision to go paperless reinforces our ongoing commitment to sustainability and reducing our impact on the environment, as well as providing an accessible service for our clients. We are proud to be doing our part to promote a more sustainable future for all.”

Accountancy & Accounts, ESG/CSR, Finance News, News

Public sector finance professionals have key role in sustainability and addressing climate change

ACCA Global Talent Trends Survey reveals public sector facing talent challenge

Finance professionals working in the public sector play a crucial role in addressing sustainability and climate change issues. ACCA’s (the Association of Chartered Certified Accountants) Global Talent Trends Survey shows three out of four public sector respondents agree that accountants will play a bigger part in helping organisations address this agenda in the future.

In one of the largest ever studies across the accountancy profession, ACCA’s inaugural Global Talent Trends Survey 2023 provides a unique and vital view of how people feel about working in the finance profession right now. Finance professionals working in the public sector share many of the same concerns as the wider profession, but there are some differences.

ACCA’s research highlighted seven key talent trends for the public sector:

  1. Inflation is fuelling wage pressure: the impact of rising prices on salaries is more of a concern for public sector employees than for any other sector.
  2. Hybrid work is a work in progress: a significantly lower proportion of public sector employees have adopted hybrid and remote working practices compared to the private sector. 71% of public sector financial professionals are fully office based compared to 57% in all sectors.
  3. Addressing burnout must be a priority: just over half of public sector financial professionals (52%) believe their employers do not consider employee mental health to be a priority.
  4. Mobility is driving a possible talent crunch: public sector respondents indicated a similar level of mobility to the average of all sectors. However, amongst those planning to move roles, 4 in 10 public sector finance professionals expect to move internally in the next two years, while 5 in 10 are predicting an external move.
  5. Technology is empowering but training is key: 88% of those in the public sector want more technology training as they recognise the power technology has in supporting finance professionals to add more value. But 40% fear technology will replace all or part of their role.
  6. Inclusivity is strong but perceptions about social mobility are more troubling: 61% of public sector financial professionals think their organisation is inclusive (compared to 68% of all sectors), while 49% in all sectors (including public) have the perception that a lower socio-economic background is a barrier to progress.
  7. In turbulent times accountancy provides career security: public sector financial professionals see the key benefits to a career in this sector as the opportunity to gain a professional qualification (38%); having a job with purpose (27%) and the ability to make an impact (23%) – scores which outstripped all sectors at 33%, 23% and 17% respectively.

Jamie Lyon, head of skills, sectors and technology at ACCA, said: “Developing the talent of tomorrow is one of the top priorities for the accountancy profession, especially in the public sector. ACCA’s inaugural annual talent trends survey ensures the voice of those working in the profession – including the public sector – is heard and that the profession helps create a working environment where today’s professionals thrive and where tomorrow’s talent wants to be.”

As well as providing valuable insights the report sets out the ways in which ACCA supports employers, student and members, as well as the wider public sector.

Lloyd Powell, Head of ACCA Wales, said: “These findings have important implications for public sector employers in Wales as they seek to retain and attract finance professionals to careers in the sector. While the sector faces its challenges, it is clear that those working in accountancy and finance in the public sector see the ability to make a real difference to people’s lives as a key aspect of their roles. This new report is intended to support a workforce of vibrant and dynamic public sector finance professionals to drive through essential public financial management reforms.”

Read the full report.

Finance and Banking, Finance News

How Will Silicon Valley Bank Failure Affect the UK?

On Friday, March 10, 2023, Silicon Valley Bank (SVB) collapsed due to a steep decline in its share price. This was the culmination of a series of events that had taken place in the bank in less than a week, from its trading of long-term bonds in exchange for cash to its announcement of efforts to raise capital toward recovering the losses realized from bond sales. In truth, the events that led to this ultimate failure had begun several months ago; the bank was apparently unable to see what lay ahead.

Previously the 16th largest bank in the United States, SVB was one of three US-based financial institutions that recently crashed rapidly. The crash is said to be the most devastating since the 2008 financial crisis, which also saw the ousting of several banks from the market. Months before this, SVB had set up a branch in the United Kingdom — and secured more than £6 billion in deposits. So, what happens to this UK branch, the businesses who deposited their funds there, and the UK’s business environment in general?

What Really Caused SVB’s Failure?

Source: Unsplash

 

At its core, SVB failed due to a “bank run” — a case where there is a surge in withdrawal demands from the bank due to fears by depositors that their finances are not safe. SVB lacked sufficient cash to meet these demands, so it was compelled to trade long-term bonds in exchange for money, realising $1.8 billion in losses. But these losses came to exist because the US Federal Reserve had earlier increased interest rates to curb inflation. Since SVB’s long-term bonds were not subject to these new interest rates, they were less valuable in the financial market.

Several events occurred after this mess: the company’s efforts to raise capital by selling equity, the withdrawal of even more funds by depositors, and the eventual collapse of SVB’s share price by 60%. Subsequently, the US Federal Deposit Insurance Corporation (FDIC) shut down the bank’s activities as it had become too insolvent to execute financial obligations. Moreover, this negatively impacted the strength of the dollar, as the US Dollar Index (aka DXY) showed a slight decrease in the week of the collapse. Take a look at the DXY chart.

SVB UK and HSBC’s £1 Acquisition

Source: Unsplash

Although the collapse of SVB certainly affected its UK-based subsidiary, it did not deliver a major blow to the UK’s banking sector.

Nonetheless, the UK companies banking with SVB were faced with a risk of failure themselves, with consequent impacts on the nation’s tech and business space. This exposure had to be handled with joint efforts from the UK government and the Bank of England.

On Monday, March 13, 2023, HSBC announced that it had acquired SVB UK for £1 after a series of discussions. With up to $2 trillion in deposits, HSBC was well-positioned to take up SVB UK’s assets, which could then be used to expand HSBC’s operations regarding geography and sector. It was also buoyant enough to assume SVB UK’s liabilities and assured depositors that their funds were safe.

FInance, Finance News

How to choose the best savings account

Putting some money aside in a savings account is always a good idea. Savings are a great buffer in case of an emergency. They can also help you set some money aside for large purchases like a holiday or a new home.

Weighing up the various savings accounts available and need someone to break down the factors you’ll need to consider? Then you’ve come to the right place:

  • Interest rates

One of the perks of a savings account is that they allow you to earn interest on the money you save. You’ll probably need to compare savings accounts from several providers before you get a feel for what the best interest rates currently are.

Interest rates will be slightly better for savings accounts such as Cash ISAs, where you will have restricted access to your money for a certain period, which brings us on to the next point…

  • Access to Money

Decide how important it is to you to have easy access to your money. If you’re saving for a large goal, such as a house purchase, you may find that restricted access helps you meet your savings goal faster. Accounts with restricted access also bring the added benefit of a higher interest rate.

For UK residents under 40, a Lifetime Cash ISA is a great way to save for a first home. The government pays a bonus worth 25% of what you save in this account every tax year. This type of savings account is almost impossible to access unless you use it to buy a first home though, so you’ll need to be certain you want it first.

On the other end of the spectrum, an easy-access savings account could be ideal if you want to dip into the savings “as and when”.

They are usually easy to set up online. Check the terms before you commit, as some accounts may restrict how many times you can withdraw money in a year.

Always check whether the savings account you are opening offers you instant access to savings. Sometimes they ask for a notice period (30-90-day notice periods are common).

  • Tax

In some instances, you may find that you pay tax on the interest accrued in a standard savings account. This tax is usually subtracted from your interest automatically.

If you want to be sure that you can save without being taxed on it, it may be worth investigating cash ISAs. With a cash ISA, you can save up to £20,000 per year without paying tax on it (the limit is £4,000 for a Lifetime ISA).

You will be able to split your annual ISA allowance across the four different types of ISA if you choose to. These are Cash, Stocks and Shares, Innovative Finance and Lifetime.

  • Minimum deposits

Some savings accounts require you to save a certain amount per month as a minimum. Others make this optional but may only reward your interest if you have saved a minimum amount during that period.

Always check the terms and conditions beforehand so that you don’t tie yourself into an agreement to put away more than you can reasonably afford.

Savings accounts are highly recommended. With these tips, you now know what to look for when you’re searching for the one that best fits your needs!

Business, Finance News, News

Leading Intelligence Provider Calls For Action On UK Sanctions Regime

KCS Group Europe Says Government And Corporations Need To Scrutinise  Provenance Of Funds

London-based intelligence firm KCS Group Europe is calling for a stronger sanctions regime against Kremlin-backed financial interests in the UK.

It follows an investigation by the Times/Transparency International which found ownership of financial interests, connected to sanctioned individuals, is being passed to relatives, evading money-laundering rules and breaching legislation.

In a recent paper,  KCSGE CEO Stuart Poole-Robb says: “The initial wave of Western sanctions following the war in Ukraine was matched by a seemingly sincere effort to root out the worst domestic excesses of questionable Russian influence.

“But since then, Russia has both modified its existing schemes to avoid greater scrutiny and created new ones.”

Analysis by the Times found that properties worth hundreds of millions of pounds have been transferred to family members of sanctioned individuals with links to the Kremlin.

It included the revelation that an eight-year-old child of a former regional governor, who chaired the Russian Bar Association and is sanctioned in Ukraine, is the owner of a £2.3m flat in Kensington, in London.

Similarly, the wife of a UK-sanctioned oligarch owns property in the Paddington area of the capital, worth nearly £100m which includes an office block and a pub.

The government is under pressure to overhaul the sanctions regime from senior Conservative MPs and the Commons Foreign Affairs Select Committee.

Poole-Robb says: “A much-heralded UK bill requiring foreign companies owning UK property to disclose their ultimate beneficial owners (UBOs) saw just four sanctioned Russians come forward, with the number of loopholes and sidesteps built into the legislation allowing UBOs to remain secret.

“With over one trillion dollars of Russian black money believed to be circulating around the world, recovering it all is an impossible task – as is, most likely, fully tearing down the Russian networks of financial concealment and political influence.

“However, it remains incumbent on governments and corporations to not only want to understand the provenance of funds and deals that may be presented, but to understand that proxy directors and shell companies are rarely found in isolation but working in concert to support the broader Russian networks that have persisted (and will continue) long after the tanks have left Ukraine.”

Business Advice, FInance, Finance and Banking, Finance News

5 ways to improve your business credit score

When it comes to running a profitable business, there are so many factors that can affect your finances. One factor that many businesses owners don’t consider is their credit score and how it can impact your financial life. A business credit score can affect your ability to borrow and can even affect the likelihood of winning new business. So with this in mind, the blog below looks at the top ways in which you can improve your business credit score in just 5 simple steps!

 

What is a business credit score?

Most people will be aware of a personal credit score and how it affects your ability to borrow money. When you take out any sort of credit or finance, your credit score can be impacted by your ability to stick to the rules of the agreement and make payments on time. Bad credit usually indicates that you’ve mishandled credit, repaid late, or missed payments all together. When it comes to owning and running a business, your business credit score is very similar. Your business credit score can be independent to your personal score if you are a limited company. Your company will usually have to undergo a credit check when you start a contract with a new partner or supplier and can also affect the rates you are offered. If you’re looking to get a vehicle such as used van finance deals for your business, your credit score could also affect the likelihood of getting the best finance and your ability to get approved.

 

Which factors affect your business credit score?

Just like your personal credit score, there are a number of factors which can affect your credit rating.

  • Payment history. Just like your personal credit score, your ability to make payments on time and in full can affect your credit rating. If you fail to pay invoices on time, your credit score can be negatively impacted.
  • Markers on your report. If you’ve failed to meet payments in the past, it can lead to markers on your personal credit file such as CCJs or defaults. These markers can also affect your business rating too.
  • File your accounts on time. At the end of each financial year, your company will need to file their accounts. You should make sure you always file in full and also on time each year to help raise your credit score.

 

How to improve your business credit score

There are many benefits of having a better credit score and here are 5 top tips to increasing your business credit score.

  1. Pay on time. One of the easiest and most influential ways to increase your credit score is to make sure you meet all of your current repayment deadlines. All payments should be made on time and in full to help show good financial habits.
  2. Limit credit applications. If you’re shopping around for finance, it can be a good idea to limit the number of applications you make in a short space of time, this can indicate to lenders that you keep getting refused or are desperate for funding. It can be easier to get approved for finance with good credit so it’s important that you protect your credit score where you can.
  3. Look after your personal credit too. If you are a sole trader, your personal credit score will play a big part in keeping your business finances in order. This is because lenders or partners can also look at your personal file to get an idea of how you’re going to handle your finances. You should try to make sure you also have a good personal credit score as well as a business one.
  4. Keep your information updated. It’s important for your business credit score that you are traceable. You should make sure all the information on your business credit report is accurate and up to date. If you move locations, you should always update your business address as a matter of urgency to stop your score being affected.
  5. Check your credit regularly. You should get into the habit of checking your business score regularly and keeping on top of it. You can use a credit referencing agency to review and improve your credit score just like you would with your personal one.