Switchboard Finance Logo – Company Credit Score Glossary

Company Credit Score

A Company Credit Score measures the financial reliability and repayment behaviour of a business. Lenders use company credit scoring to assess approval for Business Loans, Working Capital Loans, Business Line of Credit, Invoice Finance, and Equipment Finance. Related terms: Company Credit File, Credit Score, Credit Enquiry. Relevant blogs: Business Cashflow System, 9 Cashflow Mistakes SMEs Make, 7 Business Costs You Can Finance.

Why Company Credit Score Matters

A Company Credit Score is one of the strongest predictors of business lending outcomes. Lenders rely on it to assess financial stability, risk levels, and eligibility — especially for businesses in the Tradie Hub, Truckie Hub, Café Hub, and Whitecoat Hub.

What a Company Credit Score Shows

  • How reliably a business pays debts.
  • Any defaults, court actions, or overdue accounts.
  • Trading stability and creditor behaviour.
  • Likelihood of missing repayments in the future.
  • Overall borrowing risk for lenders.

Official info: asic.gov.au

What affects a Company Credit Score?
Payment history, defaults, court actions, credit enquiries, and trading behaviour all influence the score.
Does a Company Credit Score affect loan approvals?
Yes — lenders rely heavily on the score to assess business loan eligibility and risk.
Can a Company Credit Score be improved?
Yes — by paying bills on time, reducing overdue accounts, and maintaining clean trading behaviour.
Is a Company Credit Score the same as a personal credit score?
No — a Company Credit Score reflects business behaviour, while a personal score reflects an individual’s credit history.
Can directors be affected by a low Company Credit Score?
Yes — especially when personal guarantees are required for business loans.