Utilities are essential for any business to function successfully, regardless of their size or industry. Therefore, it is vital for organisations to do their homework in order to source the best deal for their business. There are many suppliers across the market, and they all provide a multitude of rates. This often gives businesses a wide range of options to choose from. However, there are various factors that suppliers consider when deciding whether to accept a customer. One of which, is the business’s credit score.
Read on to find out why suppliers rely on credit scores, and what you can do if you find your business is deemed high risk.
Why Are Credit Scores Important to Suppliers?
People often relate credit scores to attaining finance. They are not, however, always aware that they also play an important role in securing business utility deals. Suppliers use credit scores to predict the likelihood of a business defaulting on their payments.
The bottom line is energy is expensive and for that reason suppliers have to be cautious what risks they take when providing it commercially. Businesses use far higher quantities than domestic customers, so if they default on their payments, the supplier can be financially impacted. Suppliers also deem certain sectors high risk, such as restaurants and pubs, as they have a high level of instability. Due to the long and costly process of recovering owed money, suppliers will not take these risks lightly. Consequently, they will either refuse to supply a high risk business or offer more expensive tariffs.
What Does This Mean for Your Business?
If your business is deemed as high risk – either due to it’s industry or it’s credit score – don’t panic. You may not have the vast amount of options a low risk business does, but armed with the right knowledge you will still be able to find a good energy deal.
Suppliers that accept high risk businesses often ask for additional measures to be implemented, such as:
- A security deposit be paid.
- Charge an additional premium.
- Insist on payment by Direct Debit.
- Install a Pay As You Go energy meter.
How Can We Help?
These additional measures can often complicate the comparison process. This is where we come in! Here at Watt, we have a dedicated team of utility specialists who have helped over 855 thousand business owners pocket over £120 million in savings since 2000.
We know the ins and outs of every supplier, tariff and contract out there. What’s more, we work with a large number of suppliers, so are confident we can obtain a great deal for your business.
If you are interested in getting a quote for your business utilities, click here.