We use business credit reference agencies to help assess companies and to report how loans are run. Because some people worry a business application will mark their personal credit file, this article sets out exactly what is shared, with whom, and the difference between a soft and a hard search.
Which agencies
We work with business credit reference agencies — Experian Business, Creditsafe and Equifax Business. They hold commercial credit information about UK companies, separate from the consumer agencies that hold personal files.
Soft search vs hard search
- Soft search. Eligibility checks and our on-site calculator perform a soft search. A soft search is visible to you and to us, but not to other lenders, and it does not affect any credit score. You can see whether you are likely to qualify without leaving a mark.
- Hard search. A full application performs a hard search at the point you submit it, after you have explicitly agreed. A hard search leaves a footprint visible to other lenders for a period. Several hard searches in a short space of time can read as financial stress, so it is worth applying only when you intend to proceed.
What we report while the loan runs
Once a loan is live, the company's repayment performance can be reported to the business agencies. Payments made on time build the company's record of good account management; missed payments or arrears may also be reported against the company. After the account is settled and closed, it stays on the company's business file for a period so other business lenders see the full picture — see how long we keep your records.
What is not a personal credit search
The identity and anti-money-laundering check we run on the signing director is a verification step, not a personal credit search. We do not record this loan, or the application, against the director's personal consumer credit file with Experian, Equifax or TransUnion. For the fuller answer, see will applying for a Credicorp loan affect my credit file.
Seeing and correcting the data
A company can request a copy of its own business credit file from any of the business agencies, and you have a statutory right to ask an agency to correct anything inaccurate. If you think we have reported something wrong about the company, raise it through the General Support Enquiry form on our Forms & Requests page and we will investigate and, if needed, ask the agency to update the record. Our Privacy Policy explains how we use credit reference data in full.