Every small business owner knows the frustration of waiting for opportunities. Preparing for them now can make it easier to seize them when you find them.
Since many business opportunities require funding, preparing financially can be a smart move. Your credit scores – business and/or personal – can influence whether funding doors open quickly or stay firmly shut.
Establishing business credit takes time, which is why it’s often smart to start the process before you need it. Here are concrete steps you can take right now to start establishing your business's credit history as fast as possible.
Step 1: Form a legal entity and get an EIN
While you can build business credit as a sole proprietorship, forming a separate business entity gives you significant advantages. A proper business structure can protect your personal assets and make your company more credible to lenders and suppliers.
The most common business entities for small businesses are limited liability companies (LLCs) and corporations. LLCs offer flexibility in management and taxation while providing personal asset protection. Corporations provide the strongest liability protection and can make your business appear more established to potential creditors.
Once you've established your business entity, apply for an Employer Identification Number (EIN) from the IRS. You can complete this process online the same day through the IRS website, giving you immediate access to this crucial business identifier.
Your business structure helps form the foundation for your company's financial future. Starting with the right business structure can make building business credit easier.
While you can establish business credit as a sole proprietor, you won’t fully separate your business and personal finances.
Step 2: Set up a dedicated business phone and address
Consistency in your business contact information can help credit bureaus and lenders verify your business legitimacy. Try to get a business phone number and business address you can maintain long-term, as frequent changes can make your business appear less stable.
Step 3: Get your D-U-N-S number
To build credit with Dun & Bradstreet (D&B)—one of the three major business credit bureaus—your business needs a Dun & Bradstreet D-U-N-S® Number. Getting this number early in the process may help your business start building a D&B credit profile once tradelines start reporting.
Your D-U-N-S® Number (D-U-N-S stands for Data Universal Numbering System) is a unique nine-digit identifier that Dun & Bradstreet uses to track your business credit history. This number is essential for establishing business credit quickly.
You can request your D-U-N-S® number for free directly from Dun & Bradstreet's website. The process typically takes a few business days, making it one of the fastest steps in building your credit profile.
Step 4: Choose an industry code
Select an accurate NAICS or SIC code that describes your business type. Lenders use these codes to assess risk and determine loan eligibility - some industries face restrictions or higher rates. You will often be asked for this code when you apply for credit. An incorrect industry code on your credit file may hurt your financing prospects.
Step 5: Open a business bank account
A dedicated business checking account can help establish your business as a professional operation and is often legally required for corporations and LLCs. While business bank accounts don't appear on your business credit reports, they can be essential for building credibility with lenders and suppliers.
Many small business financing options require proof of revenues in the form of business bank statements, so establishing banking history early gives you an advantage when applying for credit.
It’s a good idea to keep your personal and business finances separate to avoid commingling funds. This separation can help protect your business entity status and make your company more attractive to potential creditors. Try to use personal accounts for business expenses or vice versa.
Step 6: Establish net-30 vendor tradelines that report
One of the fastest ways to build business credit is through vendor relationships that offer "trade credit" - the ability to buy now and pay later. Net-30 accounts give you thirty days to pay, for example. Not all vendors report to business credit bureaus, so focus on suppliers that do report.
Step 7: Use a secured card or fintech business charge card
A business credit card or charge card offers a way to help separate business and personal finances. Since most major small business card issuers report payment history to business credit bureaus, you may be able to use the card regularly and pay on time.
Some business cards may still require a personal guarantee or report to personal credit. Check with issuers before applying.
If your personal credit needs work or you're just starting out, consider:
- Secured business credit cards that require a deposit
- Store credit cards from office supply retailers
- Business charge cards that require payment in full
It may help to keep your credit utilization below 30% of your limit and try not to miss payments, as payment history is a very important factor in credit scoring models.
Regular use combined with on-time payments can quickly establish a positive payment history.
Step 8: Pay invoices on time or early
Payment history is the most important factor in business credit scores. Paying on time is essential, and paying early may give you an advantage, particularly if you are trying to build a strong Dun & Bradstreet PAYDEX® score.
Business credit reports track "days beyond terms" (DBT), noting not just whether you paid on time, but how many days before or after the due date.
The PAYDEX® Score generally rewards early payments, and businesses that pay well before due dates may see higher scores. For example:
- Pay 30 days early: 100 PAYDEX®
- Pay 20 days early: 90 PAYDEX®
- Pay 10 days early: 80+ PAYDEX®
- Pay on time: 80 PAYDEX®
An 80+ PAYDEX® score signals lower risk to lenders and suppliers, and may result in better credit terms or higher approval rates for financing.
Consider setting up automatic payments or payment reminders to ensure you don’t miss a due date. Even small vendor invoices matter — early payment strengthens your credit profile.
Step 9: Review and dispute errors quickly
Errors on business credit reports can be common. Businesses may get mixed up with other businesses, and information that comes from public records and third-party sources. Review your reports carefully and dispute any inaccuracies immediately.
Common errors to watch for:
- Incorrect business information (name, address, phone)
- Payment history that doesn't belong to your business
- Accounts that don’t belong to your business
- Outdated or incorrect public record information
File disputes directly with each credit bureau reporting the error. They typically investigate within a month, and will update your report if they find verifiable errors or simply remove the information. Quick action can prevent small errors from becoming bigger problems.
Step 10: Monitor your business credit reports
Your business credit reports can be accessed by anyone willing to purchase them — from potential lenders to prospective clients — and you won't necessarily know in advance.
Monitoring your business credit can help you spot possible issues early and track your credit-building progress. If possible, check your credit with all three major business credit bureaus:
- Dun & Bradstreet
- Experian
- Equifax
Business credit bureaus may report different information, so monitoring all three gives you a more complete picture of where your business stands.
With Nav Prime you can monitor your business and personal credit in one dashboard, and get up to two tradelines submitted to major business credit bureaus.1
How to build business credit from scratch
Why fast business credit matters
If you build business credit before you have an urgent need for it, you won’t need to rush. But many business owners aren’t aware of business credit, much less how to get started. Like them, you may feel like you are behind in the process.
If you’re trying to build business credit quickly, you probably already know some of the impacts it can have:
Better financing options: Strong business credit may mean you qualify for more types of financing, as well as better terms on loans and lines of credit.
Supplier relationships: Good credit can help you negotiate better payment terms on trade credit (net-30 instead of net-15, for example), and that may improve your cash flow.
Emergency preparedness: When unexpected expenses or events arise, good credit may help give your business quicker access to funding.
Growth opportunities: Whether it’s expanding to a new location or buying a failing businesses’ equipment, strong credit may help you seize time-sensitive business opportunities without delays.
Personal credit protection: Business credit can help you avoid using personal credit for business expenses.
Frequently asked questions
With regard to credit history building features: results will vary, some users may not see improved scores – improvement not guaranteed. Scores are calculated from many variables. The Nav Prime Charge Card is a business financing product and may not be used for personal, family or household transactions.
This article was published on November 4, 2025.
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Gerri Detweiler
Education Consultant, Nav
Gerri Detweiler has spent more than 30 years helping people make sense of credit and financing, with a special focus on helping small business owners. As an Education Consultant for Nav, she guides entrepreneurs in building strong business credit and understanding how it can open doors for growth.
Gerri has answered thousands of credit questions online, written or coauthored six books — including Finance Your Own Business: Get on the Financing Fast Track — and has been interviewed in thousands of media stories as a trusted credit expert. Through her widely syndicated articles, webinars for organizations like SCORE and Small Business Development Centers, as well as educational videos, she makes complex financial topics clear and practical, empowering business owners to take control of their credit and grow healthier companies.