How to Build Business Credit

Building business credit is essential for securing funding, improving financial stability, and separating your personal and business finances. This guide will walk you through the process step by step.

Step 1: Establish Your Business Properly

• Register your business as an LLC, S-Corp, or C-Corp.
• Obtain an EIN (Employer Identification Number) from the IRS.
• Set up a business phone number and business email.
• Open a business bank account to separate personal and business finances.

Step 2: Get Listed with Business Credit Bureaus

• Register with Dun & Bradstreet for a D-U-N-S number.
• Check your business credit profile with Experian Business and Equifax Business.

Step 3: Open Business Trade Lines

Start building credit by using vendor accounts that report to business credit bureaus. Some popular options include:

• Uline – Office and warehouse supplies.
• Grainger – Industrial supplies.
• Quill – Office supplies.

Step 4: Apply for Business Credit Cards

Once you establish a business credit profile, you can apply for business credit cards. Some issuers offer EIN-only applications, meaning they don’t require a personal credit check:

• Divvy – Expense management card (requires EIN and financials).
• Brex – Corporate card for startups (no personal guarantee).
• Ramp – Business charge card with cash back rewards.

Step 5: Consider Secured Business Credit Cards

If you have no credit history or poor credit, a secured business credit card may be a good option. These require a deposit but can help build credit:

• Capital One Spark Classic – For fair credit.
• Wells Fargo Business Secured – Reports to business credit bureaus.

Step 6: Maintain Good Credit Practices

• Make on-time payments on all accounts.
• Keep your credit utilization low.
• Regularly check your business credit reports for errors.

Disclaimer: Blaque Net provides this information for educational purposes only. We do not endorse or guarantee approval for any credit products listed. Always review terms and conditions before applying.