How to Build Your Business Credit in 6 Steps
By Brad Mix | December 31, 2025
Establishing business credit is a crucial step for entrepreneurs who want to secure financing, separate personal and business finances, and grow their company with confidence. Building business credit not only makes it easier to qualify for loans and credit cards but also allows you to access better rates and terms. Here’s a guide on how to build your business credit in six steps.
1. Register Your Business and Get an EIN
The first step to establishing business credit is to properly register your company. You’ll need to choose a business name and structure (such as an LLC or corporation) and register with your state’s Secretary of State. This official registration separates your personal finances from your business and lays the groundwork for a credit profile.
Once your business is registered, obtain an Employer Identification Number (EIN) from the IRS. This number is essentially your business’s Social Security number and is necessary for opening business accounts, filing taxes, and applying for credit. Applying for an EIN is simple and free, and you can complete the process online through the IRS website.
2. Get a D-U-N-S Number
After securing an EIN, the next step is to register your business with Dun & Bradstreet (D&B), a major business credit bureau. D&B will assign you a D-U-N-S number, a nine-digit identification number used to distinguish your business from others in its database. This number is essential for building a credit profile with D&B and is often required by suppliers, lenders, and other companies when doing business with you.
Obtaining a D-U-N-S number is free, but it may take up to 30 days to receive it. Once you have this number, you can begin tracking and building your business’s credit history.
3. Open Accounts with Vendors That Report Payment History
To establish a positive business credit history, you need to open accounts with vendors that report your payment history to business credit bureaus. These accounts, often referred to as trade lines, help establish your company’s creditworthiness. Even if your business is new and doesn’t have a credit history, some vendors offer payment terms such as net-30, net-60, or even net-90, meaning you have a set period to pay for goods or services after receiving them.
Choose vendors that report your payment activity to one or more of the major business credit bureaus. Timely payments to these vendors will help build your credit profile, which will be essential when applying for loans or other types of credit.
4. Get a Business Credit Card
A business credit card is another effective tool for building business credit. With good personal credit, you may qualify for a business credit card, even if your business is still young. A business credit card can help you separate your business expenses from personal expenses and manage cash flow more efficiently. Additionally, many business credit cards offer rewards such as cash back, travel points, or other perks for business-related spending.
When using a business credit card, it’s essential to make sure the card issuer reports your payment history to the business credit bureaus. Always try to pay your bill on time and keep your utilization ratio (the balance compared to your credit limit) low to avoid negatively impacting your business credit score.
5. Pay Creditors on Time or Early
Your payment history is one of the most significant factors affecting your business credit score. Business credit scores, such as D&B’s PAYDEX Score, are heavily influenced by how timely you pay your bills. If you consistently pay your creditors on time, your score will improve, making it easier to qualify for favorable financing terms.
In contrast, late payments can harm your credit score, and if your score dips too low, it could become difficult to secure loans, credit lines, or favorable vendor terms. If possible, aim to pay bills early, as some business credit bureaus may reward early payments with a higher score. Establishing a pattern of prompt payments will help your business build a solid reputation with creditors and credit agencies.
6. Keep Your Credit Profile Free of Errors
Errors on your business credit report can damage your credit score and hinder your ability to access financing. Mistakes in your credit history, such as incorrect business information or fraudulent activity, can be damaging. Therefore, it’s essential to regularly review your business credit reports to ensure they are accurate.
Check your reports with each of the major business credit bureaus—Dun & Bradstreet, Experian, and Equifax—and dispute any discrepancies you find. Business credit bureaus may not be governed by the same regulations as consumer credit bureaus, so the process of disputing errors can vary. However, you are still entitled to a fair investigation into your claims.
In addition to reviewing your credit report, protect your business identity by being cautious with your company’s information. Business identity theft is a growing concern, and fraudulent accounts or activities could significantly damage your credit score.
Moving Forward
Building business credit is a gradual process, but with consistent effort and the right strategies, your company can establish a solid credit profile. By following these six steps—registering your business, obtaining key identification numbers, working with vendors that report to credit bureaus, applying for a business credit card, paying bills on time, and maintaining a clean credit profile—you can lay a strong foundation for your business’s financial future. The effort you put into building and maintaining your business credit can open doors to more opportunities, better financing options, and greater success in your entrepreneurial journey.
Brad Mix
Consultants, Growth Acceleration Consultants, Manatee, Mix, SarasotaFlorida SBDC at USF
Specialty: Disaster Assistance, SBA Lending, Startup
Brad Mix has more than 20 years of experience in the financial services industry and as a business consultant. Prior to joining the Florida SBDC at USF, Mix provided consulting services to more than 2,500 businesses and assisted business owners in securing more than $100 million in capital and $60 million in government contracts. He has extensive experience with SBA loans, including 504s, Community Advantage loans, and microloans. In addition, he assists business owners in preparing business plans, financial projections, profitability improvement, business acquisitions, business valuations, marketing and capital solutions.