Levi King is the CEO, co-founder, and chairman of Nav, a financial health platform for small businesses.
If there’s one lesson I’ve learned after starting seven different businesses across everything from sign shops to fintech, it’s this: Business and personal credit aren’t just numbers on a report—they’re the lifeblood of every small-business owner’s journey.
I’ve suffered the anxiety of being denied a loan, the frustration of watching opportunity slip by because the capital wasn’t there, and the relief of finally understanding how to use credit as a tool instead of a trap. Let me tell you why business and personal credit are, from my own hard-won experience, the most important tools you’ll ever wield as an entrepreneur.
The Foundation: Why Credit Matters
When I first started out, I didn’t know the difference between business and personal credit. I used my personal checking account—as in, wrote physical checks!—to buy supplies, pay for repairs and keep the lights on. It wasn’t until I hit a wall—when a lender told me my business didn’t have enough credit history to qualify for a loan—that I realized I was playing the game with half a deck. That moment was a wake-up call: If you want your business to survive and thrive, you need to build both your personal and business credit profiles.
Think of business credit as the foundation of your company’s financial house. Without it, you’re stuck relying on personal assets and risking your own financial security every time your business needs a boost. With it, you have access to capital, better terms from suppliers and the credibility to negotiate from a position of strength.
Access To Capital: The Lifeline For Growth
Every business, no matter how lean or scrappy, needs money to grow. Whether it’s buying inventory ahead of the holidays, hiring staff or investing in new equipment, access to capital is nonnegotiable. Here’s the catch: Banks and lenders don’t just hand out money because you have a great idea. They look at your credit—both business and personal—to decide if you’re worth the risk.
A strong business credit profile means you’re more likely to get approved for loans, credit cards and lines of credit, often at lower interest rates and with better terms. That can be the difference between seizing an opportunity and watching it pass you by. I’ve seen too many entrepreneurs get stuck in a cycle of high-interest debt or, worse, get denied altogether because they didn’t take credit seriously from day one.
Protecting Your Personal Finances
Mixing personal and business credit is like playing with fire. Early on, I made the mistake of using my own credit cards for business expenses. It seemed easier—until it wasn’t. If your business hits a rough patch (and trust me, it will), your personal assets are on the line: your home, your savings, your peace of mind. Worse, if you default on a business loan tied to your personal credit, your score takes a hit, making it harder to get financing in the future for anything—business or personal.
Separating your business and personal credit isn’t just about risk management. It’s about professionalism. It makes accounting cleaner and tax time less stressful, and shows the IRS and potential partners that you run a real, credible operation.
Building Credibility And Relationships
Credit isn’t just about borrowing money. It’s about trust. Suppliers, landlords, insurers and potential partners all look at your business credit to decide if they want to work with you. A strong credit profile signals that you’re reliable, stable and serious about your commitments. That can mean better payment terms, lower insurance premiums and access to opportunities that simply aren’t available to businesses with shaky credit.
In my own journey, I’ve seen how having solid business credit opens doors. Vendors are more willing to extend trade credit, which frees up cash flow. Landlords are more likely to lease you that perfect storefront. Even customers feel more confident doing business with a company that looks legitimate on paper.
The Role Of Personal Credit
Don’t get me wrong—personal credit still matters, especially in the early days. Most lenders will check your personal credit when you apply for your first business credit card or loan. If your personal credit is strong, you’ll have more options and better terms. But the goal should always be to transition to business credit as soon as you can, so you’re not putting your own financial future at risk every time your business needs a boost.
The Long Game: Sustained Success
Entrepreneurship is a marathon, not a sprint. Building and maintaining strong business and personal credit is about playing the long game. It’s about giving yourself the flexibility to weather storms, seize opportunities and grow on your own terms. It’s also about mental health—removing the constant stress that comes from living hand-to-mouth or worrying about the next payroll.
At Nav, we built our platform to help small-business owners see and understand both their personal and business credit, because you can’t manage what you can’t measure. My advice: Start today. Separate your finances, build your credit profiles and treat credit as the powerful tool it is—not just a safety net, but a launchpad for everything you want your business to become.
In the end, business and personal credit aren’t just numbers—they’re your ticket to freedom, growth and peace of mind. And if my journey has taught me anything, it’s that every small-business owner deserves to wield that power.
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