Don’t lose any sleep over your small business credit standing. Its importance pales in comparison to your personal credit due to a combination of murky liability rules for business-branded loans and lines of credit and the business-to-business nature of corporate commerce.
For starters, little differentiation exists between business and personal finances as far as credit bureaus are concerned. It’s a different story for large corporations, which have certain other forms of credit at their disposal, but all major credit card companies use personal credit data to make small business credit card approval decisions. They also relay monthly account information to cardholders’ personal credit reports and hold them personally liable for unpaid balances. Small business loan underwriting is based primarily on personal credit as well.