Credit scores play a crucial role in the financial health of small business owners. A good credit score can open doors to better financing options, lower interest rates, and higher credit limits, while a poor credit score can limit access to capital and increase borrowing costs.

For example, a small business owner with a high credit score may qualify for a business loan with favorable terms, enabling them to invest in growth opportunities such as expanding operations or purchasing new equipment. On the other hand, a business owner with a low credit score may struggle to secure financing or may be offered loans with high interest rates, making it harder to sustain or grow their business.

References:

• SBA - How Credit Scores Impact Small Business Lending
• Experian - The Importance of Credit Scores for Small Businesses