How to Build Credit for Your Business

How to Build Credit for Your Business

Building credit for your business is essential. You can qualify for business loans, working capital loans, and business lines of credit at favorable terms to business loans for bad credit. partners and lending partners cater to all credit types. Loan amounts from $5,000 to $500,000

Start establishing business credit

The first and most essential step for establishing your business credit would be separating your business credit from your personal credit.
This will minimize the risk of a personal credit history negatively affecting business credit and vice-versa.
Make sure you have a business checking account that’s not tied to your checking account. Then register your business with Dun & Bradstreet. Some lenders might ask for your D&B number, especially if you are looking to lease new equipment.
Get a business credit card. Run all business charges through the business credit card and establish a pattern of paying off debt. Good credit history is just as important as a good credit score, if not more important.

How to setup a business properly A to Z

1. Incorporate your business

Incorporating a business or setting up a Limited Liability Corporation legally separates a business from its owners, protecting the business credit from consequences of bad personal credit history of the business owner. And more importantly, it provides the business owner an umbrella protection as long as there is no commingling

2. Obtain EIN

EIN – a federal tax identification number, a social security number for your business. You are required to have this number for federal tax filings and to opening bank accounts in the name of the corporation or LLC. An EIN number is also required by many corps prior to paying out for services.

3. Open a business bank account

Create a separate business account under the name of your company and make sure that all financial transactions of your business are done through this account.

4. Get listed with the business credit agencies

Getting your company listed with one or more of the business credit reporting agencies such as Dun & Bradstreet will make the process of obtaining and maintaining good credit so much easier. Plus, it’d be good if your business credit card is from a company that resorts straight to one of those agencies.

5. Create a line of credit with vendors/suppliers

Working with at least 5-7 vendors and/or suppliers that offer you a line of credit or financing on your purchases will help establish credit for your company. You may also ask them to report your payments to the business credit agencies.

6. Be consistent with your payments

Pay all your bills on time. Business credit will suffer from late payments just as personal credit does.

If you are a small business that has been active for at least 6 months, have $10,000 or more in monthly revenue, and in need of a working capital loan or a business loan for bad credit, get started with business loans.


Good business credit has multiple benefits:

  • New vendors and suppliers are more willing to work with businesses that have a good credit history;
  • Banks and lenders will generally offer you better interest rates and lower fees;
  • It will give you more flexibility in negotiating payment terms with your vendors.

Once your established your business credit, make sure to monitor and maintain it just as you protect and monitor your personal credit. We advise you to Check all business credit reports diligently and look out for any inaccuracies.

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