Energy suppliers will always obtain information about companies and individuals prior to agreeing an energy supply contract.
Credit agencies generate a report of your company’s credit history and financial affairs to produce a Credit Rating.
Energy suppliers use this to decide whether to extend credit to you. This is because delivering gas and electricity supplies to you can add up rapidly.
Business credit scores range from 0 to 100. 75 or more is considered excellent, 50 generally a pass and anything below is a failure. However, energy suppliers will use their discretion if the score is close to the pass level.
Remember, energy suppliers will offer best prices to those with a good credit rating!
Start-up companies without any credit history will have a relatively low score and suppliers will be reluctant to offer you their cheapest prices as they have no guarantee you’ll be able to keep up payments.
Some Energy Suppliers do accept a low credit business, however, they might:
• Charge an additional premium (the cost of an insurance premium to cover the additional risk)
• Ask for a security deposit.
• Insist you pay by direct debit (although some suppliers offer a discount for this arrangement).
• Install a pre-payment meter.
If you don’t know what your current Credit Score is, Touchstone can provide you with a fully up to date Credit Assessment for your organisation
To download the guide to improving your credit score, click below