How to Build Business Credit

Why business credit matters

A business credit profile helps funding sources and suppliers evaluate your company separately from you personally. Over time, a strong profile may broaden the options available to your business.

Step-by-step

• Form a legal entity, such as an LLC or corporation, and register it with your state.
• Get an Employer Identification Number (EIN) from the IRS — it's free at IRS.gov.
• Open a business bank account and run all business income and expenses through it.
• Use a consistent business name, address, and phone number everywhere.
• Check whether your business has a D-U-N-S Number from Dun & Bradstreet.
• Open accounts with vendors or cards that report to business credit bureaus.
• Pay every account on time — or early, where reporting rewards it.
• Monitor your business credit reports and dispute errors.

The major business credit bureaus

The three best-known business credit reporting agencies are Dun & Bradstreet, Experian Business, and Equifax Business. Each uses its own scoring models, and not every creditor reports to every bureau.

Be realistic

Building business credit takes time and consistent payment history. Be cautious of services that promise instant business credit or guaranteed funding.

Frequently asked questions

Sources

• IRS — Apply for an EIN
• SBA — Open a business bank account