Will Switching Energy Affect My Business Credit Rating?

Image of a credit card.

When you switch your business energy supplier, you may be requested by the supplier to accept a business credit check. This is common if you are a new customer or if you cannot provide proof of your identity. Essentially, by performing credit checks, a supplier will be able to determine whether you are likely to be a dependable customer. Once an energy supplier can ensure that you will be able to pay for your business gas and business electricity, the supplier is less likely to be at risk of losing our financially if payments were unable to be made.

The process of switching your business energy supplier will not affect your business credit rating, however, an energy supplier won’t be able to supply you with energy if you do not have financial security. In some situations, an energy supplier won’t disregard your request to switch over, but instead, they will insist that you have a guarantor or put down a deposit before they agree to supply your business with gas and electricity.

To help you understand how your business credit rating may affect or be affected by switching energy suppliers, here is some more information.

 

How Does My Business Credit Rating Affect My Business Energy?

As mentioned before, an energy supplier will need to perform a credit check to ensure that you have financial security. If a business has a poor credit rating, then it can limit the choice of business energy suppliers as they will be reluctant to supply energy to these businesses. There are some energy suppliers that won’t refuse a request to switch suppliers but will insist on suitable financial security.

Here are the options that some energy suppliers may ask of a business if they have a poor credit rating:

  • Providing a security cash deposit.
  • Providing a guarantor.
  • Joining a regular payment plan (direct debit).
  • Installing a prepayment meter.

If a business has a poor credit rating, then it is also more likely that they will have to pay more for their business energy.

 

How Can My Business Energy Affect My Business Credit Rating?

Although energy bills are not a form of credit, they can actually have an impact on your business credit rating if you were to miss a payment. Ultimately, this is down to your energy supplier as to whether they mark it on your credit history. Some suppliers may report missed payments to credit checking agencies if they feel necessary.

Overall, it is important to stay on top of all of your bills, especially your business gas and electricity bills to make sure that energy is not cut off from your premise. Missing payments may also result in financial penalties.

 

Compare Business Energy Online

If you’re looking for a new business energy deal or simply want to compare business energy plans online, then please fill out the business energy comparison form and leave it to our saving experts to find the most favourable deal for your business. In the meantime, if you have any questions or if you are unsure of what you are looking for, then please don’t hesitate to contact us.

Call us on 02476 997 901 or you can email us at quote@comparenergyonline.co.uk.

 

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