If you’re starting a business, your personal credit can only take you so far. Eventually, you’ll need access to funding, better terms with vendors, and the ability to grow—without putting your personal finances on the line.
That’s where business credit comes in.
Good business credit helps you qualify for loans, secure better payment terms, and build financial credibility. But it doesn’t build itself—and it’s not automatic, even if your business is legally registered.
Here’s how to start building business credit from scratch, step by step.
1. Legally establish your business
Before you can build credit, your business needs to exist on paper.
Make sure you:
- Register as an LLC, corporation, or other legal entity
- Get a federal EIN (Employer Identification Number) from the IRS
- Open a business bank account in your business’s name
This separates you from your business financially—and shows lenders you’re legitimate.
2. Set up your business contact details
Lenders and credit agencies look for consistency. Make sure your business has:
- A dedicated business address (even a virtual one works)
- A business phone number (Google Voice or VoIP is fine)
- A professional website and domain-based email
These small steps signal you’re a real, operational company—not just a side hustle.
3. Open a business credit card
This is one of the fastest ways to start building business credit. Look for cards that report to commercial credit bureaus (like Dun & Bradstreet or Experian Business).
Use it for small, manageable purchases and pay it off in full each month. This builds a positive payment history and starts your business credit file.
4. Apply for a D-U-N-S Number
Dun & Bradstreet is one of the main business credit bureaus. To get listed, you’ll need a D-U-N-S Number (free to apply at dnb.com).
Once you have it, D&B can begin tracking your business’s credit history—especially as you open vendor accounts or credit lines.
5. Build trade lines with starter vendors
Some vendors will offer “net 30” accounts (you buy now, pay in 30 days) even if your business is new. These are great for building credit—if they report to credit bureaus.
Well-known starter vendors include:
- Uline (shipping and office supplies)
- Grainger (industrial supplies)
- Quill (office and janitorial supplies)
Make small purchases, pay on time, and build a track record.
6. Pay everything on time (or early)
The single biggest factor in your business credit score? Payment history.
Pay all your bills—vendors, credit cards, loans—on or before the due date. Early payments can even boost your score with certain bureaus.
Missed payments? They stick. And they’re hard to erase.
7. Monitor your business credit reports
Just like with personal credit, errors can happen. Check your business credit reports regularly on:
- Dun & Bradstreet
- Experian Business
- Equifax Business
Make sure your accounts are reporting correctly, and dispute any inaccuracies.
8. Gradually increase your credit mix
Once you’ve established a foundation, you can explore:
- Business lines of credit
- Equipment financing
- Business auto loans
- Higher-limit credit cards
The more responsible credit you manage, the stronger your profile becomes.
Business credit isn’t built overnight—but it’s worth it. It gives your business financial independence, opens doors to better financing, and builds long-term trust with lenders, partners, and suppliers.
Action Step
If you haven’t already, apply for an EIN and open a business bank account this week. Then apply for one business credit card or vendor account. Use it for a small purchase, pay it off early, and start tracking your business credit file. This is the foundation your business will grow on.