Small Business Credit is a term that refers to the creditworthiness of private companies. It is based on a company’s ability to secure financing and manage debt. It typically involves understanding the risks associated with lending money to small businesses, such as their limited operating history, access to capital and lack of diversified revenue sources. To build small business credit, companies must demonstrate strong financial management and create a record of paying back loans in full and on time. They should also work to establish relationships with lenders and suppliers, and secure any necessary collateral from these parties before taking out a loan. When done correctly, building small business credit can open up access to capital, reduce borrowing costs and improve overall credit scores.