Entrepreneurs spend countless hours thinking about their next product, pitch, or partnership – but far too few think about something that can make or break every one of those decisions: their credit score.
Whether you’re seeking financing, negotiating terms, or simply trying to keep cash flow healthy, understanding how credit works is a strategic advantage, not an administrative chore. A strong credit score could demonstrate financial readiness, and helps build a stronger foundation for growth.
To help us cut through the noise, we turned to someone who sees the full picture – including the systemic barriers many founders face – and that’s Tracy Antoine, a national advisor with RBC Origins, the bank’s Indigenous banking banner supporting communities across Canada.
With ample experience helping entrepreneurs navigate the financial landscape, Antoine brings a perspective that goes beyond numbers, rooting financial literacy in confidence, cultural context, and long-term success.
“It all comes down to financial wellness,” she said. “That really means thinking about your finances and feeling confident and in control of your situation.”
Why do credit scores really matter?
While many of us have glanced at our credit score, it’s easy to forget how deeply that number affects our financial options – especially for business owners. Antoine notes that the ripple effects of poor credit can stall a company before it ever gets off the ground.
“Entrepreneurs rely on credit scores to access loans, lines of credit, and fair financing,” she explained. “Your credit score will either give it to you or have it declined.”
Lenders look at the five C’s of credit to assess risk:
- Character: Your track record – whether you’ve paid bills on time and have stable income, showing reliability.
- Capacity: Whether loan payments fit into your budget based on income and existing debt.
- Capital: The money you’re putting in yourself, like savings and assets.
- Collateral: Anything accessible with value you can offer as security, such as a home, property or investment(s).
- Conditions: The purpose of the loan, the state of the economy, and the terms you’re applying for.
“When you understand what is being measured, it becomes easier to change your habits and be more disciplined,” Antoine said.
Does your personal credit affect business credit?
In short: absolutely. Personal credit carries significant weight, especially early on, before a business has its own credit history.
“A lot of people don’t know that when you start a business you have to provide your personal statement of affairs and guarantee or co-sign for any credit your business gets,” said Antoine. “If your personal finances are in disarray, that can limit you.”
As your company grows, separating personal and business finances becomes essential – not just to reduce risk, but to help your business build its own identity.
What harms credit scores – and who feels it most?
Late payments, high balances, frequent credit checks, and a thin credit history can all damage creditworthiness. But these challenges don’t affect all entrepreneurs equally.
“Many entrepreneurs begin with limited savings, fewer funding opportunities, or structural barriers in accessing banking services and training. They may have fewer banking relationships or gaps in financial education to overcome,” said Antoine. “Indigenous women entrepreneurs, for example, often feel these impacts more strongly.”
This is why culturally sensitive, community-rooted financial support is so important, she added – to level the playing field and ensure more women and diverse communities can fully participate in entrepreneurship.
What are some first steps for entrepreneurs to improve their credit?
Some early steps Antoine recommends include:
- Monitoring credit regularly
- Paying bills on time
- Keeping credit utilization low (ideally under 30%)
- Asking suppliers to report payments
- Limiting unnecessary credit checks
She also stresses the importance of using the tools available through your bank, such as RBC’s credit score viewing at no cost and access to financial advisors who can help you develop a plan.
“You know you need to renew your car insurance or schedule dentist appointments,” she said. “Add your financial advisor to that list. They’re equally as important to one’s personal wellbeing.”
Strategies that help women entrepreneurs
For women entrepreneurs, improving your financial knowledge base to support your goals doesn’t have to be intimidating – it can be a shared journey. Antoine recommends connecting with organizations that support women in business, offering workshops, resources, and community.
RBC collaborate with several groups, including Indigenous-led programs such as Pow Wow Pitch, which provides mentorship, training, and visibility for female founders and many others, as well as runs initiatives that advance women entrepreneurs more broadly, such as the RBC Canadian Women Entrepreneur Awards.
Financial wellness programs can also build confidence around saving for the future, credit, and long-term planning. And building networks with other women entrepreneurs creates a space to trade lessons, celebrate wins, and navigate challenges together.
These supports help close the access gap and empower more women – including Indigenous women – to build strong, sustainable businesses rooted in community, culture, and long-term growth.
“The biggest lesson I could share with entrepreneurs is to commit to it,” said Antoine. “Commit to yourself, your business idea, your financial plan. You go for it, and you keep trying until you get there at your own pace.”
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. The information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
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