Tide, the UK’s leading business finance platform launched Tide Credit Builder to help small businesses build their Experian credit scores so they can borrow to grow.
Small businesses, especially newly established ones, often find it difficult to borrow money from financial institutions to invest in their growth because they either lack a credit rating or do not have a sufficiently good rating. Often this is because you are starting a business or haven’t borrowed in the past. As a result, Tide has found that about 87% of its small business owners have a credit score below 80.
Tide will help its members boost their creditworthiness by granting them a micro ‘reverse loan’ of Â£ 240. The company makes ‘refunds’ of around Â£ 23 per month to Tide, once 12 monthly payments have been made the company will receive Â£ 240 in return. By making these small payments on time each month, the business will be able to prove its repayment capacity, thereby increasing its credit rating over the 12 months. The product has been developed with support from Experian.
Amit Kahana, Vice President of Tide Credit Services, said: âAs we emerge from the COVID-19 pandemic, small businesses are working hard to get back on their feet and make up for the toughest year and a half they have known. Investing in growth is high on the priority list for many of these companies, but a poor or no credit rating is often a barrier to accessing credit options.
“We hope that by providing businesses with a simple way to improve their credit rating, they will see a wider range of credit products available, helping to fuel sustainable growth.” “
By using Tide Credit Builder, small business owners will also be able to access credit services faster, get additional tips on how to improve their credit score, and understand how they can access better rates on future credit products. credit, by having a better credit rating.
Oliver Prill, CEO of Tide, said, âTide’s goal is to help our members manage and grow their businesses. Access to credit is important for many of them. I am grateful to Experian for helping us provide our members with the opportunity to build the credit history so vital to providing them with funding in the future. Tide members tend to be relatively new businesses that haven’t yet been able to build up a credit score. We are excited to be able to offer them a service that allows them to speed up this process and empower them to start using suitable credit products to grow their businesses.