How to Establish Business Credit
“Good credit is a powerful TOOL; Bad debt can kill you.” - Robert Kiyosaki
How to Establish Business Credit
A Simple, Step-by-Step Guide:
If you run a small business, building business credit (separate from your personal credit) can help you qualify for better financing, negotiate with suppliers, and protect your personal credit from everyday business use. Below is a plain-English guide based on Experian’s recommendations, with a few best practices from trusted small-business resources.
1) Make your business “real” on paper
Before anyone can extend credit to your company, they have to be able to find and verify it. That means:
Choose a legal structure (LLC or corporation are most common for separation).
Get an EIN from the IRS.
Open a dedicated business bank account and use it for business-only transactions.
Keep your legal name, address, phone, and website consistent wherever your business appears (bank, tax filings, website, directory listings).
If your company is new or doesn’t show up when you search business credit databases, Experian allows you to request that a business profile be established so creditors can validate your information.
2) Start accounts that actually report
Business credit only grows when your activity is reported to business credit bureaus. Not all vendors, lenders, or cards do this—so choose partners that explicitly report trade lines (e.g., net-30 vendors, fuel cards, or a business credit card that reports to business bureaus). Then use those accounts for real purchases.
Pro tip: Even two or three reporting accounts can start generating history. Think of them like the “starter” accounts you used to build personal credit—small limits are fine at the beginning.
3) Build positive history on repeat
The playbook is simple and repeatable:
Pay on time (or early). Payment timeliness is a major factor in business credit scores.
Keep utilization modest. Don’t constantly max out tradelines or cards.
Avoid unnecessary hard pulls by applying strategically rather than everywhere at once.
4) Monitor and fix your reports
Check your business credit reports regularly so you can spot missing trades or errors and dispute them. You can obtain business reports from Experian, Equifax, and Dun & Bradstreet; monitoring helps with financing and also guards against business identity issues.
5) Keep personal credit healthy, too
In the early months, lenders may still look at the owner’s personal credit while your business file is thin. Maintaining solid personal credit improves your financing options while your business profile grows.
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Common Questions
How long does it take?
You can often see your first trades appear within a few reporting cycles after opening and using reporting accounts. Keep paying on time and adding responsible credit over several months to deepen the file. (Timeframes vary by creditor reporting schedules.) Experian
Do I need a D-U-N-S® Number?
Many partners (especially large suppliers and some lenders) use Dun & Bradstreet data. Getting a D-U-N-S Number is a common early step, and you should also ensure your profiles with Experian and Equifax can find and verify your business. Small Business Administration
LLC Mistakes That Get you Denied
Business Credit Checklist:
Here is a quick checklist to get you started with you website blow. Remember imperfect action beats inaction, get started and keep publishing.
