iwoca launches Credit Compass to help SMEs improve credit scores

More than half of UK small and medium-sized businesses may lack a clear understanding of their financial health, according to new research released by SME lender iwoca, which today announced the launch of Credit Compass, a free tool designed to help business owners better understand and improve their credit standing.

The research reveals that 51% of UK SMEs either haven’t checked their credit score recently (30%) or don’t understand what it means (21%) – equivalent to roughly 1.1 million businesses operating without a clear picture of their creditworthiness.

The findings highlight a significant knowledge gap among business owners at a time when access to finance remains critical. Only 20% of SMEs say they trust credit agencies to accurately assess their business’s financial health, raising concerns that many companies may be overlooking a key metric used by lenders and suppliers.

To address this issue, iwoca has launched Credit Compass, a free online platform available to all UK limited businesses. The tool brings together several indicators of financial health in one place and provides guidance on how businesses can strengthen their credit profile over time.

Credit Compass provides SMEs with monthly updates of their Equifax business credit score, alongside a clear overview of their credit history, financial status and Companies House assessment.

The platform breaks down business credit health into four key areas:

• Equifax Business Credit Score – showing how lenders view a business’s creditworthiness.
• Credit History – tracking reliability in managing payments and credit relationships.
• Financial Status – measuring cash flow strength and resilience during financial fluctuations.
• Companies House Assessment – analysing stability and credibility based on official public records.

In addition to displaying credit data, the tool also explains what the information means and suggests actions business owners can take to improve their financial position.

The launch follows insights from iwoca’s latest SME Expert Index (February 2026), which surveyed finance brokers across the UK. The study found that 62% believe businesses whose funding applications are rejected often do not understand why, while 71% say those businesses also lack guidance on how to improve their creditworthiness.

Later this year, Credit Compass will integrate with Open Banking, enabling SMEs to securely connect their business accounts. This will allow iwoca to provide deeper operational insights and tailored recommendations designed to strengthen a company’s credit profile.

“One of the reasons is that business credit scores have historically been unreliable, therefore business owners may have learned to ignore them.

“We’re committed to making them reliable and actionable over time. Our massive data warehouse and experience in SME lending puts us into an ideal position to solve this problem. If successful, then millions of SMEs will benefit from it.”

Small business owners who have tested the tool say it could help companies take a more proactive approach to managing their finances.

Olusegun Shiroye, founder of Bolfis Limited, said: “Business owners shouldn’t be flying blind, especially in such a tough economic environment. I’d never tracked my business’s financial health before – which may have stifled some of my growth over the years – but iwoca’s tool was straightforward to use and breaks everything down into categories that actually make sense.

“It’s definitely a useful resource for keeping tabs on where your business stands – and it’s free, so why not use it?”