10 Ways Small Business Owners Can Boost Your Credit Score for Better Funding Opportunities

Take These Smart Steps Today

Running a small business takes grit, hustle — and let’s be honest — access to funding. Whether you’re trying to open a second location, build up inventory, or just make it through a slow season, a good credit score can make all the difference when it comes to landing funding opportunities.

The tricky part? Credit is actually more than just numbers. It’s also about trust. And lenders want to see that you’re a reliable bet.

If you're wondering how to boost your credit score so you can get better funding opportunities for your business, you’re in the right place. Here are 10 practical, doable steps to help get your credit (and your business) where you want it to be.

1. Keep Business and Personal Finances Separate

First things first: You are NOT your business. If you’re using your personal credit card to cover business expenses, it’s time to draw a “Do Not Cross” line. Set up a business checking account, get an EIN (if you haven’t already), and use a business credit card or vendor account to handle business purchases.

👍 Why it matters: It helps build your business credit, and also protects your personal credit if cash flow gets tight.

2. Know Where You Stand (and Fix What’s Broken)

Would you drive across the country without checking the GPS? Probably not. Same goes for your credit.

Grab your personal credit reports from the big three bureaus (Experian, Equifax, TransUnion) and your business credit reports from places like Dun & Bradstreet or Experian Business. Then, do a comprehensive check. Look for errors, duplicate accounts, or anything fishy — and dispute it. Cleaning up your report can lead to a quick credit bump.

3. Pay Vendors and Creditors on Time — or Early if You Can

Late payments are like red flags waving at lenders. Even one missed due date can drop your score and make banks nervous. Steady, on time repayments are exactly what makes you a reliable bet for other funding options. It shows you know how to manage your cash flow and stay on top of things.

Set up auto-pay or use accounting tools to track what’s due and when. Better yet? Pay early if your cash flow allows — some business credit bureaus (like D&B) actually reward early payments with higher scores.

4. Use Credit — But Not Too Much

Here’s the thing. There’s actually a credit paradox. You need to use credit to build your score, but use too much and it can hurt you. So how do you find that balance? Work to make thoughtful credit purchases, not spur-of-the-moment buys.

Also, try to keep your credit utilization, or how much of your available credit you’re using, under 30%. So if your business card has a $10K limit, staying under $3K is the goal. This proportion shows lenders you’re responsible with what you’ve got.

5. Be Picky About Applying for New Credit

Every time you apply for credit, it leaves a mark, called a hard inquiry. Too many in a short time can drag your score down and make lenders wonder if you're scrambling for cash. The point is to show that you’re going to use the credit responsibly. So, before you hit “apply,” do your homework. 

👍 Apply only when you’ve got a good chance of approval — and space out your applications to give your credit time to recover.

6. Work With Vendors Who Report Your Payments

Not all vendors report to credit bureaus, and while that may seem like a good thing (What they don’t know won’t hurt you), it isn’t always. The ones who do can help you build credit just by doing what you already do: paying bills.

👍 If you work with suppliers who offer net-30 or net-60 terms, ask if they report to Dun & Bradstreet or other bureaus. Those on-time payments can quietly boost your business credit profile behind the scenes.

7. Lean on a Business Partner With Strong Credit

If you’re in a partnership or have a co-owner, you may be able to leverage their strong credit for a joint loan or by becoming an authorized user on a business credit card. But be careful! This isn’t the right move for everyone, and relationships have been irreparably damaged for less. But if there’s mutual trust and solid communication, it could help you qualify for better funding options.

8. Tackle Business Debt Strategically

Carrying debt doesn’t automatically hurt your credit — but carrying too much can. If you’ve got multiple loans or cards, choose a strategy to lower your debt amount:

• Avalanche method: pay off the highest-interest accounts first

  
  

• Snowball method: pay off the smallest balances first for quick wins

  
  

Whichever path you choose, stick with it. Paying down debt improves your utilization and shows lenders you’re serious about staying financially healthy.

9. Start Small With a Credit-Builder Loan or Secured Card

If your business is new or your credit is still getting off the ground, you’ve still got some options. A secured business credit card or credit-builder loan can help you establish a history of on-time payments and responsible use — both of which boost your score over time. One way to think of it is as strength training for your credit profile.

10. Track Your Progress Like You Track Your Profit

You can’t improve what you don’t monitor. Use tools like Nav, CreditSignal, or even your bank’s app to keep an eye on your credit scores and how it’s moving. But don’t just stop there. Set realistic goals — like raising your score by 25 points in six months or getting three trade lines reporting — and check in regularly. 

👍 Watching your score improve is more satisfying than you might think.

Why Knowing How to Boost Your Credit Score Matters

Boosting your credit score isn’t just about bragging rights. A strong credit profile can:

✅ Help you qualify for investment crowdfunding, larger loans, or lines of credit

✅ Get better interest rates (which means less money out of your pocket)

✅ Improve your relationships with vendors and landlords

✅ Keep your personal assets safer by helping you qualify for business-only funding

The crux of it - it gives you more control — and more options — to run your business the way you want to. 

Final Thoughts

Knowing how to boost your credit score is one of the smartest moves you can make as a small business owner. It’s not glamorous, and it won’t happen overnight — but it will pay off in better funding, more opportunities, and less stress down the road.

Take it one step at a time. Every payment you make, every dollar of debt you pay down, every smart decision — it all adds up. You’ve already built a business. You’ve got this, too.

Feel like you’re ready for those funding opportunities now? Check out our investment crowdfunding here.