Business Insights

The top seven business credit score FAQs

Synora Gore
3 minutes to read

Credit scores are a key factor in determining your eligibility for a loan. We encounter the following questions from our members most frequently when inquiring about their credit.

Click on the ‘+’ signs below to expand the answers to these frequently asked questions.

No, business credit and personal credit are not the same. Business credit is based on the financial history of the business itself. Personal credit is based on an individual’s personal credit track record. 

Loans offered through the SBA, like SBA 7(a) working capital loans offered in NEWITY’s portal, are based on both business credit and personal credit scores. It’s important to demonstrate timely repayments for both yourself as the business owner and for the business as a stand-alone entity. 

To separate business credit and personal credit, you must establish separate business accounts for business usage. This includes having a separate credit card, banking accounts, and loans in the name and tax ID of your business. It can be detrimental to both your personal and business credit scores if you use personal credit to fund your business and vice versa.

It can take from one to three years to build business credit, depending on whether the business has had any past credit history and length of credit history. 

Some of the easy ways to improve your business credit rating include establishing a good repayment track record on business loans, paying vendors on time, applying and using a business credit card efficiently, and monitoring your credit report for any red flags. 

To improve your business credit score as quickly as possible, you must pay your bills on time, apply for and effectively utilize a business credit card if you do not currently have one, retain old business credit card accounts to maintain longevity, and keep a low credit utilization ratio.

To improve your business loan qualifications, you should ensure you do not default on business or personal credit cards, all debt payments are made on time, you restrict your use of credit to lower than the maximum allowable amount, and refrain from applying multiple times through loan applications that impact your credit score. 

We’re proud to offer SBA 7(a) working capital loans through our portal. SBA loans have lower interest rates and higher likelihood of approval for small business owners 

To see how much you may be eligible to receive, complete our 10-minute prescreen application.

To qualify for an SBA 7(a) small business loan, your business must be:

  1. U.S.-based and operated
  2. Owner supported / owner funded
  3. Eligible per the SBA’s requirements

Your loan amount will determined by the business’ average annual revenue, FICO score, and years in business