™2 min read
Definition
Credit utilisation measures drawn balance against available limit across credit cards, overdrafts and revolving facilities. Persistently high utilisation signals that a business leans heavily on borrowing to operate, which lenders and credit reference agencies read as elevated risk.
In plain terms
Maxing out a facility every month is a warning light, even if you never miss a payment. It suggests the underlying issue is margin or timing, not a one-off need.
Why it matters for your company
Keeping utilisation moderate helps your business credit score and leaves headroom for a real emergency. See how to improve your business credit score.
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