How to Build Business Credit

1. Incorporate or Form LLC — Separate your business legally and get an EIN.
2. Open Business Bank Account — Establishes financial history under your business identity.
3. Register with Business Credit Bureaus — Dun & Bradstreet (get a DUNS number), Experian Business, and Equifax Business.
4. Get Business Credit Card — Use it for regular purchases and pay in full each month.
5. Establish Trade Credit — Work with vendors who offer net-30 or net-60 payment terms and report to bureaus.
6. Pay All Bills On Time — Payment history is the most important factor in your score.
7. Monitor Credit Reports Regularly — Catch errors and track progress.

0-3 months: Form entity, open bank account, get DUNS number, apply for starter credit card.

3-6 months: Add first vendor trade lines, build payment history, establish credit profile.

6-12 months: Expand trade lines, increase credit card limits, see early score improvements.

12-24 months: Build strong score, qualify for larger credit lines, reduce reliance on personal guarantees.

Business credit uses different scoring systems (Paydex for D&B, Intelliscore for Experian) and different scales. Separating the two protects your personal score, allows higher credit limits, and makes your business more fundable independently.

• Start early — even before you need a loan
• Use credit regularly, even for small purchases
• Maintain low credit utilization (under 30%)
• Pay early when possible
• Diversify trade lines across multiple vendors

• Mixing personal and business finances
• Failing to register with all three major bureaus
• Missing even a single payment
• Not monitoring credit reports for errors or fraud