New Development Could Improve Small Business Owners’ Credit

I’ve spent my life in the trenches of American small business—fixing signs in the Idaho cold, sweating payroll in manufacturing, and later, building fintech platforms to help entrepreneurs like me navigate the labyrinth of credit.

So when I read the news that FICO is launching credit scores that finally incorporate Buy Now, Pay Later (BNPL) data, I felt a jolt of hope and a twinge of caution. This is a watershed moment for credit history in America, and it’s going to ripple through every Main Street and startup hub in the country.

What This Means for Small Business Owners’ Personal Credit

Let me break down what this means specifically for small business owners, why it matters for your personal credit, and what you should take away from this announcement.

1. BNPL Data in Credit Scores: A Long Overdue Step for Small Businesses

For years, BNPL has been the wild child of consumer finance—ubiquitous, easy to use, but invisible to the credit bureaus. That’s always struck me as a disconnect, especially for small business owners who often rely on every available tool to manage cash flow.

Millions of entrepreneurs have used BNPL to bridge gaps, buy inventory, or simply keep the lights on. Yet, until now, their responsible use (or misuse) of these products didn’t show up on their personal credit reports. FICO’s move to include BNPL data in their new Score 10 BNPL and Score 10 T BNPL models is a long-overdue correction.

As someone who’s seen firsthand how invisible credit behaviors can torpedo a business loan application, I can’t overstate how important this is for small business owners’ personal credit. Lenders will finally get a more complete, nuanced picture of your financial life—not just the traditional credit cards and loans, but also the BNPL plans you may rely on to run your business.

2. Financial Inclusion Gets a Real Boost for Entrepreneurs

One of my lifelong missions has been to expand access to capital for the underdog—the entrepreneur with grit but no generational wealth, the immigrant starting a food truck, the single mom launching an Etsy shop. Historically, if your first credit experience was with BNPL, you were invisible to lenders. Now, FICO’s new models promise to help small business owners build a legitimate personal credit history from day one.

This is more than a technical tweak; it’s a step toward leveling the playing field. If you pay your BNPL bills on time, that positive behavior will finally count for something. For small business owners who bootstrap with every tool available, this could be the difference between a “yes” and a “no” from the bank.

3. Aggregating BNPL Loans: Smarter, Fairer Scoring for Business Owners

One of the biggest risks with adding BNPL to credit scores was always the potential for unfair penalties. If each BNPL plan was treated as a separate loan, someone using BNPL for multiple purchases could look overleveraged—even if they were managing it responsibly.

FICO’s solution? Aggregate the loans, so the model sees the big picture, not just the raw number of accounts. That’s smart. It means the system recognizes patterns and context, not just raw data.

I’ve seen too many business owners get dinged for technicalities or misunderstood behaviors. This approach is a win for fairness and accuracy, especially for entrepreneurs juggling multiple short-term obligations.

4. Most Users Will See Neutral or Positive Score Changes

There’s always anxiety when a new scoring model rolls out. But FICO’s research shows that for more than 85% of BNPL users, the impact on their credit score will be about 10 points—and for most, it will be positive or neutral. That’s huge. It means responsible BNPL use can actually help your personal credit, not hurt it. For small business owners who rely on every point to qualify for loans or better rates, this matters.

Of course, missed payments will hurt you. That’s always been true, and it’s a necessary guardrail. But the days of being penalized just for using BNPL are over.

5. Lenders Get a More Accurate Risk Picture—And So Do You

I’ve been on both sides of the lending desk. When lenders can’t see the full scope of a borrower’s obligations, they either overreact (decline or price too high) or underreact (approve risky loans). Both outcomes are bad for small businesses. Now, with BNPL data in the mix, lenders can make smarter, more informed decisions. That means more approvals for deserving borrowers and fewer surprises down the road.

For business owners, this also means you can finally see how all your credit behaviors—traditional and BNPL—affect your personal score. Transparency is power.

6. A New Era of Credit Education for Small Business Owners

This change is a wake-up call for everyone, especially small business owners who often mix personal and business finances (sometimes out of necessity; sometimes out of confusion). If you use BNPL, those habits are now part of your personal credit story. It’s time to get educated: understand your payment schedules, avoid overextending, and monitor your credit reports like a hawk.

Knowledge is your first line of defense. If you’re not sure how BNPL is showing up on your credit, ask. If you’re using it to manage cash flow, make sure you’re not setting yourself up for a surprise down the road.

7. Small Business Owners: Use This to Your Personal Credit Advantage

Here’s the bottom line: this is an opportunity. If you’re a small business owner who uses BNPL to buy inventory, manage expenses, or smooth out cash flow, you can now build personal credit with those transactions—if you do it wisely. Pay on time, don’t overextend, and keep records. This could help you qualify for better financing, lower rates, and more favorable terms.

But beware: BNPL is not free money. Overspending or missing payments will hurt your score and your business. The same discipline you bring to your business books, you should bring to your BNPL accounts.

A Call for Business Credit Bureaus to Step Up

I started my first business in a world where credit was a black box. I learned the hard way that what you don’t know can kill your dreams. FICO’s inclusion of BNPL data is a long-awaited leap toward a more accurate, inclusive, and transparent credit system, especially for small business owners’ personal credit.

But let’s not stop here. I hope the business credit bureaus are paying attention and will follow FICO’s lead by updating their scoring models to include SMB BNPL data as well. Small business owners deserve the same recognition for responsible borrowing on their business credit profiles as they are starting to get on their personal credit reports. This is how we build a stronger, fairer financial future for Main Street—together.