Hitting the Next Shot: Increasing A Bad Business Credit Score
How to Bounce Back from a Low Score and Move Forward
One bad shot shouldn’t ruin an entire round of golf, and the same goes for credit. What matters is how you respond to the setback. With a strategic approach and a steady hand, you can turn a rough patch into a strong finish.
Recently we sat down with Blue Bridge Financial’s Director of Business Development Kevin McCarthy, an avid golfer and small business advocate, to talk about how businesses can fine-tune their credit game and bounce back from setbacks. Drawing on his experience in both credit underwriting and business development, Kevin offers clear and actionable advice for rebuilding business credit and putting your business in a better position for long-term success.
What Your Score Says (And Doesn’t Say) About Your Business
It’s a common misconception that a low business credit score is a reflection of poor management. In reality, credit issues can stem from many different factors, including things outside of an owner’s control.
“Bad credit is not always the result of doing something wrong,” Kevin says. “We often see it tied to the nature of the industry, the region you’re in, or even outdated information on your credit profile.”
Business credit often depends on factors like industry classification, which can impact scores even among businesses with similar revenue and cash flow
Personal vs. Business Credit
In golf, your round score reflects both your long game and your short game. Each part plays a critical role in the outcome but they require different strategies, tools, and skills. Credit works the same way. Personal and business credit are equally important, yet they serve very different purposes.
Kevin McCarthy explains that while they’re tracked separately, both types of credit follow the same core principles: pay on time, use credit responsibly, and avoid overextending. But what they measure and how lenders use them isn’t the same.
Personal credit reflects your individual borrowing history. Business credit, tied to your company’s EIN, shows how your business manages vendor accounts, loans, and lines of credit. Many small businesses have commingled expenses, which can complicate financing.
That’s why Kevin recommends establishing clear separation between business and personal finances from the start. Open a business bank account, use credit in your company’s name, and make sure your information is accurate with the major bureaus.
There’s good news, too: strong personal credit can sometimes help fill in the gaps.
“Where business credit data is limited, lenders may look to your personal credit to get the full picture,” Kevin says. “That’s why it’s important to build both.”
Steps to Start Improving
Improving business credit requires focus and effort. Kevin emphasizes a few key strategies:
- Make payments on time across all business accounts
- Limit new debt to what is necessary for essential operations
- Avoid stacking debt in a short period of time, which can signal risk
- Keep your business information up to date with credit bureaus
“We’ve seen situations where a business’s classification is no longer accurate, and that alone negatively impacts the score,” Kevin notes.
Planning ahead is also key. The best time to start improving your business credit is before you need it. Even if financing isn’t on your radar today, building a strong credit profile now gives you more options and leverage when opportunities or unexpected challenges arise.
Building a Strong Credit Foundation: Step-by-Step
Kevin compares it to the pre-shot routine in golf: the steps you take before you even swing determine where the ball will land. Strengthening your business credit isn’t just about fixing the past, it’s about building a solid setup for long-term success.
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Lay the Legal and Financial Groundwork
Before you can improve your score, you need to make sure your business is set up for credit success. That means fully separating personal and business finances.
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Form a Legal Business Entity
Forming an LLC or corporation creates a distinct legal entity, essential for building business credit. -
Get an EIN
Your Employer Identification Number (EIN) serves as your business’s tax ID and is often required when applying for credit, loans, or trade accounts. -
Open a Business Bank Account
A dedicated business checking account helps establish credibility with vendors and lenders, while keeping your finances organized and distinct from personal expenses. -
Obtain a DUNS Number
Issued by Dun & Bradstreet, your DUNS number is a unique nine-digit identifier that lenders and vendors use to assess creditworthiness. Many institutions require it before extending credit.
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Establish and Maintain Credit Responsibly
Once your business foundation is set, it’s time to actively build your credit profile.
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Use Trade Lines That Report
Partner with suppliers and vendors that report payment history to major business credit bureaus like Dun & Bradstreet, Experian Business, and Equifax Business. -
Open a Business Credit Card
A credit card in your company’s name that reports to credit bureaus helps establish a track record. -
Keep Credit Utilization Low
As a rule of thumb, aim to use less than 30% of your available credit. High utilization can negatively impact your score, even if you’re making payments on time. -
Never Miss a Payment
Payment history is one of the most important factors in business credit scoring. Set up reminders or automatic payments to make sure bills are paid promptly. -
Use Credit to Grow Carefully
Responsible use of loans or lines of credit provides working capital and demonstrates effective fund management. As Kevin states, managing what you borrow well is more important than borrowing a huge amount.
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Monitor and Protect Your Progress
Building credit isn’t a one-time event, it’s an ongoing process that requires vigilance.
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Check Your Reports Regularly
Monitor your business credit reports for accuracy and signs of fraud. Even small reporting errors can affect your ability to qualify for financing. -
Dispute Inaccuracies Promptly
If you spot errors, contact the credit bureaus directly to initiate a dispute and correct the record. -
Consider Professional Help
If you’re unsure where to begin or feel stuck, working with a financial advisor or credit expert can help you navigate the process with a personalized plan.
By following these steps, business owners can gradually transform a weak credit profile into a solid foundation for future financing and growth.
Finding the Right Lender
When your credit isn’t perfect, working with a lender who understands your complete financial picture becomes even more important.
Traditional banks often take a black-or-white approach. If your credit score doesn’t meet a certain threshold, the application doesn’t move forward.
“At Blue Bridge Financial, we have the ability to take a more all-around view,” Kevin says. “We look at the entire situation… your personal credit, business cash flow, and the story behind the numbers.”
Blue Bridge Financial offers:
- Fast credit decisions, typically within hours
- Flexible underwriting that factors in personal credit and bank statements
- Support from real people who understand your industry
This approach gives business owners more room to breathe and more confidence to act.
Application Without the Risk
Another benefit of working with Blue Bridge Financial is that the initial application process involves only a soft credit pull.
“There’s no risk in applying,” Kevin emphasizes. “A soft pull won’t impact your business or personal credit, and it gives you a clear look at what kind of financing you may qualify for right now.”
That clarity can help business owners make informed decisions, even if they’re not ready to move forward immediately with a purchase.
How Long Does Credit Recovery Take?
The time required to improve a business credit score varies. Kevin says it generally takes between three months to a year to see significant progress, depending on the situation.
“It’s a process. You have to be consistent. But if you’re taking the right actions, you will see results,” he says. “The key is to get started.”
Why a Conversation Can Be the Turning Point
For many business owners, the hardest part is teeing off. A poor credit score can feel overwhelming or even embarrassing, but the road to recovery starts with the next good swing.
“There’s no harm in having the conversation with one of our lenders,” Kevin says. “Even if you’re not eligible today, we can help you understand why and what steps to take next.”
Ready to (Re)build?
If you’re ready to take the next step toward improving your business credit and accessing the financing you need to grow, Blue Bridge Financial makes the process simple:
- Apply online with a one-page application.
- We’ll perform a soft credit pull only, with no impact on your credit score.
- You’ll have a decision in hours and funding in as little as one day so you can acquire the equipment you need to enhance your business.
- Make monthly payments on time and watch your business credit grow.
Whether you are in the early stages of rebuilding or ready to expand, Blue Bridge can help you move forward with confidence.
“You don’t have to be perfect to qualify,” Kevin says. “Just like in golf, a few bad shots don’t mean the round is over. What matters is how you recover. Stay positive, take the next swing, and keep moving forward.”
Let Blue Bridge Financial help you build a stronger credit foundation. Apply now to get started.
Frequently Asked Questions About Growing Your Construction Business
A score below 50 on most business credit scales (such as Dun & Bradstreet’s PAYDEX or Experian Business Credit Score) is generally seen as risky by lenders.
With consistent effort, you may start seeing improvement in 3 to 6 months, but significant changes typically take up to a year.
Yes. If your business credit is limited or poor, lenders often review your personal credit as part of the decision-making process.
What are the best first steps to rebuild my business credit?
Not with Blue Bridge Financial. Their initial application process uses a soft credit pull, which won’t impact your score.
They take a holistic approach, considering your full financial picture—not just your credit score—and offer fast decisions and flexible options.
