The higher your personal or company’s credit score, the easier you’ll find it to qualify for finance and attract lower interest rates.

To improve your credit score, commercial credit reporting bureau CreditorWatch recommends:

• Learn how the system works. Credit scores are calculated based on a company or individual’s financial stability, payment history and reputation.
• Order a copy of your credit report. That will give you an official insight into how you’re performing.
• For business owners, review all your main financial documents. Check your balance sheet, income statement and cash flow statement, to understand the financial health of your business.
• Assess your debt levels. For business owners, this should include your absolute level of debt, debt-to-equity ratio, share of ‘good’ versus ‘bad’ debt and debt-servicing capacity.

Evaluate your payment history. “Meeting payment deadlines consistently showcases a high level of financial responsibility and reliability. On the flip side, if you’re often late with payments or don’t pay at all, it can raise concerns among lenders and negatively affect your overall creditworthiness,” CreditorWatch said.