... / 90 Day Blueprint... / Why Credit Scores Matter as a Founder

A healthy score unlocks the cheapest money on the market, period.

BUT, banks, online lenders, and the SBA all screen by credit tier before they look at revenue:

• SBA 7(a) “Small Loans” now require an SBSS score of 165 (up from 155) for loans under $350 K, effective June 1, 2025. Founders below that line are automatically declined. Reference
• Across mainstream lenders, the average approved personal credit score in 2025 is 680, with many underwriters refusing to consider applications below 650. Reference

Most companies younger than two years haven’t built up a track record with the business-credit bureaus (Dun & Bradstreet, Experian Business, Equifax Commercial). Those bureaus need several months of on-time payments to vendors, cards, or leases before they can even calculate a score. Until that history exists, lenders look at the owner’s personal credit instead.

• Time-in-business rule. Many banks and online lenders ask for at least two years of operating history before they’ll judge a loan on business numbers alone. LendingTree – Business Loan Requirements
• SBA guidance. The U.S. Small Business Administration states that loan eligibility for a new venture “is typically based on its owner’s personal credit score.” SBA – Establish Business Credit
• Personal guarantees are standard. Because the business is still “unproven,” most lenders require the founder to sign a promise to repay with personal assets if the company can’t. NerdWallet – Personal Guarantees for Business Loans

High scores give founders leverage to demand better deals:

• Lower origination fees on term loans

• Higher limits (→ lower utilization) on business credit cards

• Longer repayment periods or 0 % intro APR promotions

• Business Credit Cards: 0 % intro offers tend to disappear below ~670 FICO. (Examples: Chase Ink, AmEx Blue Business.)

• Equipment Leasing: Vendors extend 0 % “soft-cost” financing at 700+ scores. (Examples: Dell Financial, U.S. Bank Equipment Finance.)

Credit influences everyday operating costs and timelines:

• Commercial Leases – Landlords routinely pull credit; founders with weak scores face larger deposits or personal guarantees. Reference
• Supplier Terms – Net-30 and Net-60 vendor accounts report to business credit bureaus; strong payment history unlocks bulk discounts.
• Insurance Premiums – Many carriers use credit-based scoring to set rates; sub-650 scores can add hundreds per year. Reference

Investors, corporate partners, and key hires often view credit health as a proxy for reliability and discipline:

• Angel Investors: Early convertible notes may require personal guarantees tied to your score.
• Enterprise Procurement: Fortune 500 vendor onboarding includes credit checks; weak scores slow deals.
• Banking Services: Positive history unlocks treasury tools without high balance minimums.

Credit scores aren’t vanity metrics—they’re gatekeepers that affect every dollar you borrow, every lease you sign, and every partnership you land. Strengthen them early, and the road to funding, favorable terms, and stakeholder trust becomes exponentially smoother.