Why SME owners cannot afford to ignore their credit score

Access Bank South Africa is urging individuals, especially entrepreneurs and small-business owners, to take their credit score as seriously as their cash flow. The bank says a strong personal score remains one of the most underestimated tools for unlocking finance, equipment, premises and growth opportunities.

“Many small-business owners believe their personal credit score is separate from their enterprise journey. In reality, lenders often look at the owner before they look at the business,” says Sandile Shabalala, Chief Executive Officer of Access Bank South Africa. “A healthy credit profile can be the difference between securing working capital when you need it or watching a growth opportunity pass you by.”

Why credit scores matter even more for SMEs

For established organisations the business stands on its own. For SMEs and sole proprietors, personal behaviour often serves as a proxy for how the company is run. This means that missed payments, high credit utilisation or irregular banking behaviour can affect access to trade credit, supplier terms, and banking support such as working capital or asset finance.

Shabalala says this plays out in everyday SME challenges. “An entrepreneur may have a viable business with real customers and a clear order book, but if their credit record shows late payments or defaults, the lender sees risk. We want SMEs to understand that building a clean track record early makes funding faster, cheaper, and far more predictable.”

What SMEs should focus on in 2026 – Access Bank highlights four practical behaviours:

1. Pay every account on time, even the small ones: Missed retail, mobile, or store-card payments harm creditworthiness more quickly than people realise.
2. Keep your credit utilisation below 35%: Using your full credit limit signals distress. Demonstrating discipline signals reliability.
3. Avoid unnecessary accounts: Every credit application leaves a footprint. Multiple applications in a short period typically raise red flags.
4. Use low-risk products to build history: Tools such as monthly debit orders, small revolving credit, or store accounts (managed well) help build the momentum lenders look for.

Small steps that strengthen credit health

To help individuals and SME owners start from scratch or repair their credit profile, the bank emphasises:

• Using credit gradually, starting with manageable limits.
• Paying more than the minimum instalment.
• Avoiding high-interest short-term lenders and being aware that cash withdrawals from credit cards are treated as unsecured lending, which can weigh heavily on future affordability.
• Banking consistently, so income and expenses show a clear pattern.

Access Bank also encourages individuals to check their credit score regularly on platforms such as ClearScore or TransUnion. This helps people spot problems early, understand how their behaviour affects their score, and track steady improvement over time.

A bankable SME begins with a bankable individual

Shabalala says the misconception that “the business will speak for itself” is holding many founders back.

“When an SME applies for finance we look at the cash flow, the contracts and the potential, however we also look at the individual. A strong credit score helps the entrepreneur negotiate better pricing, better terms and better partnerships.”

Access Bank’s teams see the pattern across thousands of small-business clients.

“The SMEs that secure funding faster are often the ones where the owner has taken credit behaviour seriously. It forms part of the trust equation between lender and entrepreneur.”

A practical commitment

Access Bank says its priority is to keep helping SMEs remove the friction that slows growth.

“We are pushing for on-time payments, cleaner trade flows, and skills that translate into a first pay-day. A strong credit score fits into the same story. It is a simple, powerful discipline that gives entrepreneurs more room to move when opportunities arrive.”

The bank will continue offering guidance through its Knowledge and Networks learning platform, including practical steps for those building or rebuilding their credit profile from the ground up.