Credit reports 'essential' for start-ups

Those starting their own business have been advised that as well as drawing up share certificates and an employment contract, they should also make sure they have a credit report.

In the current financial downturn it is increasingly important that new companies have these in order to secure financing, Galapark Finance has claimed.

Furthermore, if these documents are incorrect firms may find that any funding they are to receive from banks is delayed.

Bill Barclay, managing director of Galapark Finance, said: "It is quite easy to get your credit report now and it's not a huge thing. They are providing a service to the lender and the borrower."

He also added that those starting a business should check their reports thoroughly to ensure there are no mistakes.

According to figures from the Federation of Small Businesses, there are 4.7 million small businesses in the UK.

Published on: December 4, 2008

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