Building Business Credit: How to Establish and Grow Your Business Financially
Building business credit is one of the smartest moves you can make as an entrepreneur. Whether you’re a solo entrepreneur or running a small team, strong business credit opens doors—better financing options, larger vendor accounts, and a professional reputation that builds trust.
If you're just starting out or trying to level up financially, here's a step-by-step guide to building solid business credit the right way:
1. Set Up Your Business Properly
Before you can build credit, you need to make sure your business is legally and financially separate from your personal identity.
Register your business as an LLC or corporation.
Get an EIN (Employer Identification Number) from the IRS—it’s like a Social Security Number for your business.
Open a business bank account and run all transactions through it to keep finances clean and professional.
2. Open Accounts with Vendors That Report to Credit Bureaus
Many vendors and suppliers offer net-30 or net-60 terms, meaning you buy now and pay later. The key is to choose vendors that report your payments to commercial credit bureaus like Dun & Bradstreet, Equifax Business, or Experian Business.
A few vendors that are great for new businesses include:
Uline
Quill
Grainger
Make purchases, pay early or on time, and begin building your payment history.
3. Apply for a D-U-N-S Number
Dun & Bradstreet is one of the top business credit bureaus. To build a credit file with them, you need a D-U-N-S number, which you can get for free from their website. Many lenders and vendors will use this number to check your creditworthiness.
4. Get a Business Credit Card
Once your business is properly set up, apply for a business credit card that reports to business credit bureaus. Start with a secured card if you’re new or have little credit history. Use the card for small purchases and pay it off in full each month.
This builds positive credit utilization and shows that your business can handle credit responsibly.
5. Pay All Bills on Time (or Early)
This is non-negotiable. Payment history is one of the biggest factors in your business credit score. One late payment can damage your score and hurt your chances of getting approved for loans or trade credit.
Set reminders or automate your payments to protect your reputation.
6. Monitor Your Business Credit Reports
Just like with personal credit, you should regularly check your business credit reports. Errors can happen, and catching them early is key.
You can monitor your credit through:
Nav (a free and paid service)
Dun & Bradstreet CreditMonitor
Experian or Equifax Business Services
Monitoring your reports helps you stay on top of your credit-building progress and spot opportunities for improvement.
7. Build Relationships with Lenders and Banks
As your credit grows, start nurturing relationships with local banks or credit unions. These relationships can lead to better financing options in the future, such as lines of credit, equipment loans, or working capital loans. Strong credit gives you leverage—and relationships help seal the deal.
Final Thoughts
Building business credit isn’t a sprint—it’s a strategy. The earlier you start, the more opportunities you'll create. By setting up your business the right way, paying vendors on time, and using credit responsibly, you can unlock funding, partnerships, and long-term growth. In other words, you're not just building credit—you're building legacy.
