By Adam Bannister editor at www.BusinessWings.co.uk

Without credit the average person would be unable to make large purchases such as sofas, TVs or houses. Credit is equally as critical to business people, whether they want to buy a business, get one started or inject capital to fuel a serious expansion.

Although credit-scoring models are complex and seemingly subject to many variables, there are ways to boost your application for a loan or credit card.

Check your rating

First though, how bad is your credit rating exactly?

You have a statutory right to look at your credit reference files, which you can do through credit reference agencies such as Equifax, Experian or Callcredit.

For a £2 fee, they will send you a report on your credit rating. To request this, you can send them a letter or register your interest via their websites.

A spokesman for MoneySavingExpert.com, the website of money-saving guru and journalist Martin Lewis, advises: "There are a number of tips to try and improve your business’ chance of getting credit.

"Yet firstly, you should understand there’s no such thing as a universal credit rating, and certainly no blacklist.

"Lenders contact one or more credit reference agencies to access financial data and decide whether to lend us cash. Write to these and ask to see your file, then go through it, checking there’s no wrong information which could count against you."

You should check whether outstanding debts, repayment history and addresses are accurate. If they’re not, then you should inform the agency is question that the data is incorrect and they may request relevant paperwork to prove it.

Improve your credit rating

First of all, let’s state the obvious: it’s essential that you keep up with the payments on your existing debt and always pay on time. Even if you default on payments a couple of times, it can cause you problems for years hence.

Now to less obvious ways of improving your credit score. First, if you’re not listed on the electoral role then it can seriously affect your chances of obtaining credit, so write to the local council to ensure you get listed.

Another good tip is to refrain from making too many applications for credit in a short space of time – this will adversely affect your score. It’s better to stagger applications for things such as mobile phones or car insurance.

Rather than applying straightaway for a product, first ascertain whether you really want it by getting a quotation. It’s wasteful to notch up a ‘credit footprint’ on your credit file for something that isn’t even a worthwhile product.

"If you’re about to relocate, going to experience a downturn in income or are planning to adopt a new, risky business strategy in the near future, apply for any credit needed prior to these events," adds the spokesperson for MoneySavingExpert.com. "It’ll increase your chances of getting it."