When I started my first business, I had everything going for me — or so I thought. I was young, confident and raised on grit. Growing up on a farm in Idaho taught me how to work hard from the time I could walk. By college, I already had industry experience from working at an electric sign company, and now I was launching one of my own.
I figured my work ethic and expertise would carry the day. And for a while, they did.
But what no one tells you — what I learned the hard way — is that you can be doing everything right, and still be broke. On paper, my business was successful. In reality, I was one bad invoice away from disaster.
When the real struggle began
Within a month of opening, I applied for an SBA loan and got rejected. I assumed I’d be able to get trade credit from vendors — no luck there either. I had no credit history. Not bad credit. No credit. I’d been raised to believe that debt was dangerous, so I avoided it altogether. I’d paid cash for everything, even my car. I thought that was responsible. Turns out, it made me invisible to lenders.
And that’s when reality hit: every dollar had to come out of my own pocket. I was constantly cash-strapped. Hundreds of thousands in accounts receivable — and nothing in the bank to cover payroll or rent. I remember the sleepless nights, the stress headaches, the panic of waiting for payments I couldn’t speed up. I was doing good work, but I couldn’t prove to anyone that I was worth trusting.
Related: SBA Loans: A Complete Guide for Small Business Owners
How I turned it around
Eventually, I realized the problem wasn’t personal — it was systemic. Lenders and vendors weren’t being unfair. They just had no data to go on. No one knew if I paid bills on time, because I had never given them the chance to find out.
So I started building my credit history, step by step. I applied for credit cards. I opened small lines of credit. I paid everything on time, every time. I learned how business credit scores work — and how to separate personal and business credit properly. Back then, good information was hard to come by. Today, there’s no excuse. Tools, platforms and expert guidance are everywhere.
What I once had to figure out through trial and error, most entrepreneurs can now learn in a weekend.
Why credit isn’t optional
If you’re building a business, strong credit isn’t just “nice to have.” It’s a growth engine. It lets you borrow money at lower rates. It unlocks trade credit so you can stock up without draining your bank account. It improves your insurance rates and lease terms. It strengthens your reputation with vendors, customers and partners. Want to win government contracts or work with large clients? Good luck without a solid business credit score.
Even payment processing gets easier and cheaper when your credit is in good shape.
Bottom line: your credit tells the world whether you’re trustworthy — and in business, trust is everything.
Related: How to Fund Your Business With an SBA Loan
The takeaway
Hard work matters. So does expertise. But if you ignore your credit, you’re stacking the odds against yourself from day one.
I learned that lesson the painful way. You don’t have to.
Start building your credit history now—personally and professionally. Don’t wait until you need financing to realize you’re invisible to lenders. Learn how business credit works. Use the tools available to you. And take control of the one thing that can make or break your business long before your product ever sees the light of day.
Trust me: one sleepless night over cash flow is one too many.
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