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Personal vs. Business Credit Scores
Most small business financing considers both your personal credit score (FICO, 300-850) and your business credit score (Dun & Bradstreet PAYDEX, 0-100, or Experian Business, 0-100). For businesses under 5 years old or with limited business credit history, your personal credit score is the primary factor. As your business matures and builds its own credit file, business credit becomes more important — but personal credit never becomes irrelevant for small business lending.
Credit Tiers and What They Mean
Excellent (750-850): Qualifies for bank financing, SBA loans, and the best rates. Expect rates of 5-10%. Good (680-749): Most bank programs available, competitive rates from EFCs. Rates typically 7-14%. Fair (620-679): Limited bank options, strong EFC and alternative lender access. Rates 10-20%. Below Average (550-619): Alternative lenders, MCAs, and some specialty programs. Rates 15-30%+. Poor (below 550): MCAs, revenue-based financing, and asset-based options. Rates 20-50%+. These are general ranges — Brobas's AI matching finds the best specific options for your exact score and profile.
How to Improve Your Credit Score
Pay all bills on time — even one late payment can drop your score significantly. Keep credit utilization below 30% on all revolving accounts. Don't close old credit cards — length of credit history matters. Limit new credit applications — each hard inquiry can cost 5-10 points. Dispute any errors on your credit report (studies show 1 in 5 reports have errors). Build business credit by opening trade accounts with vendors who report to business credit bureaus.
Financing Options for Every Credit Level
No matter your credit score, financing options exist. The key is matching your credit profile to the right lender rather than applying broadly and accumulating hard inquiries. Brobas's AI matching engine evaluates your complete profile — credit score, revenue, time in business, equipment value, and industry — to identify lenders most likely to approve you at the best possible terms. One application, matched to 500+ lenders.
Best For
- Business owners wanting to understand their financing options
- Anyone looking to improve their credit for better rates
- Operators unsure which financing products they qualify for
- First-time borrowers learning the landscape