For almost all businesses, utilities are a necessity in order to operate successfully, and utilities will be needed irrespective of industry, location or business size. This means that it is essential for businesses to ensure they are getting the best deal possible. However, even with a vast range of options throughout the market, your business credit score might restrict you – so what should you do in this situation?
Why does the supplier need to know my credit score?
Some organisations might not be aware that their credit score will be a factor when obtaining business utility contracts. Utility providers will use a company’s credit score to estimate how much risk there is in taking on that customer and the likelihood of them defaulting on their payments. Suppliers are often precautious in the commercial market as businesses have much higher usage than residential customers, so a defaulted business payment will impact a supplier much worse than a defaulted domestic payment.
Organisations may be considered a higher-risk business based on either a low credit score or their industry, this will affect which providers will accept them as a customer and what rates will be offered. Some industries will automatically be deemed high-risk based on the level of instability, for example, pubs and restaurants or betting shops. However, each supplier will have its own risk categories so this may vary based on different utility providers. If you aren’t sure whether your sector will be high-risk, please don’t hesitate to call us on 0114 2295951.
What happens if our business is considered high-risk?
If your organisation is considered high-risk, you might not have as much choice as a low-risk business, but you can still get a good deal on your business utilities. Some suppliers simply won’t quote for high-risk customers, and those who will quote might require additional measures, for example, requesting a security deposit is paid, an additional premium on rates to compensate for risk, only accept payment by Direct Debit, or insisting on a pre-payment meter. It’s still better to shop around for the best deal as different suppliers might categorise your level of risk differently.
How can Utilinet help?
It’s important to make sure your potential supplier knows your credit situation when receiving quotes, and additional measures might complicate things. However, using a trusted broker such as Utilinet can be a huge help. We are experts in business energy, business water and business broadband and telecoms . We’ve helped thousands of organisations in all industries find the right utility contract to suit their business needs. Speak to us today for a completely free, no obligation quote.