How to Build Business Credit

Incorporate or Form LLC

Form a legal business entity (LLC, corporation, etc.) to separate business from personal finances. Get an EIN (Employer Identification Number) from the IRS—this is your business's "social security number."

Why it matters: Lenders can't evaluate business credit if business isn't legally separate from you.

Open Business Bank Account

Open a dedicated business checking account using your EIN and business name. Use it for all business transactions. Lenders check bank account history when evaluating credit.

Tip: Maintain consistent deposits and avoid overdrafts.

Register with Business Credit Bureaus

Register your business with credit bureaus:

• • Dun & Bradstreet: Get D-U-N-S number (free)
• • Experian Business: Register business profile
• • Equifax Business: Register business profile

Why it matters: Bureaus need to know your business exists before they can track credit.

Get Business Credit Card

Apply for a business credit card using your EIN (may require personal guarantee initially). Use it for business expenses and pay in full monthly or keep utilization below 30%.

Tip: Start with secured business card if you can't qualify for unsecured.

Establish Trade Credit

Get net-30 or net-60 payment terms with vendors and suppliers. Pay on time or early. These trade lines report to business credit bureaus and build your credit history.

Tip: Start with small vendors, then work up to larger suppliers.

Pay All Bills On Time

Payment history is the most important factor in business credit scores. Pay all business bills (utilities, rent, vendors, loans) on time or early. Set up automatic payments to avoid missed payments.

Monitor Credit Reports

Check business credit reports regularly (quarterly or annually) from Dun & Bradstreet, Experian, and Equifax. Dispute errors immediately. Monitor for fraud or unauthorized accounts.