How to Establish and Build Your Business Credit

How to Establish and Build Your Business Credit

How to Establish and Build Your Business Credit

Building business credit can benefit your small business in many ways. Strong business credit can make it easier or less expensive to get certain types of financing, business insurance, or payment terms with suppliers. It can even help your business land lucrative business contracts. 

Here we’ll share simple steps to establish and build business credit to help your small business grow. 

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Why Is It Important to Establish Business Credit?

Your business can have its own credit reports and scores. Anyone can check business credit, so it may be used by lenders, suppliers or even companies deciding whether to do business with you. Good business credit may help you qualify for small business loans or financing, as well as help you secure financing at more favorable terms or lower interest rates. Since there is no requirement that companies notify you when your business credit is reviewed, however, you may never know how your credit history has affected your business. 

At the same time, there are misconceptions that if a business has good business credit, the owner’s personal credit will never be checked, and that they will no longer have to provide personal guarantees for a business loan. The reality is that many small business lenders check personal credit, and that some loans, including bank loans or SBA loans, will require a personal guarantee. 

Does Your Personal Credit Matter for Your Business?

Both personal and business credit are important if you’re a small business owner. It is not uncommon for lenders to require personal credit checks for small business loans. Here we’ll focus on how to build business credit, but be sure your personal credit scores are good as well. 

The good news is that you can start building business credit even if your personal credit isn’t strong. 

How To Build Business Credit 

Major business credit bureaus maintain business credit reports. The key to building good business credit scores is to do business with companies that report payment history, and then to pay on time and keep debt levels manageable. 

It really can be that simple. 

However, there are some nuances that make the process of establishing business credit a little tricky for some entrepreneurs, so we’ll break it down here into step-by-step instructions. 

7 Steps to Establish Business Credit

  1. Build your foundation
  2. Register your business
  3. Get a D-U-N-S number
  4. Get accounts that report
  5. Open a business credit card
  6. Pay on time
  7. Monitor your credit

1. Build your foundation

To effectively establish business credit, it helps to properly establish your business. If your business is new, take the time to set up your business so it appears professional to both clients and lenders. 

Get a business phone number and, if possible, get it listed in directory assistance. Get and use a professional email address. Choose and consistently use a business address, which can be P.O. Box or even your home address if you’re just getting started. 

Here are 15 steps to make your business legit

Why is this important? Business details such as these may appear on your business credit reports and you want to maintain a consistent, professional image. 

2. Register your business 

Most businesses should be officially registered with their state. If you formed a business entity such as an LLC or S Corp in your state, you should have completed this step. Annual filings will likely be required. (If you formed your business in another state, you may also need to register your business in the state in which you do business. 

If you are operating as a sole proprietorship or independent contractor and have not registered your business, you can file a fictitious business name with your state. (This is sometimes referred to as a “DBA”.)

In either case, you may need to get professional or business licenses. Check your state requirements. 

Why is this important? Public information such as this may be used by some commercial credit agencies to start your business credit profile.

3. Get a D-U-N-S number

A DUNS number is your business identifier with the credit reporting agency Dun & Bradstreet. If your business doesn’t already have one (you can check whether it does for free), you will want to request one. It’s free. 

Creditsafe, Equifax and Experian all have separate identifiers (numbers to identify your business in their systems) but you don’t have to initiate this type of request with them. 

An EIN is the business equivalent of a Social Security number. The IRS requires some businesses to get an Employer Identification Number (EIN), but having one is not required to establish a business credit file. However, some business financial applications may require an EIN, and EINs may be reported to business credit reports. 

Why is this important? It ensures your business is visible to Dun & Bradstreet.

4. Get accounts that report to business credit agencies

The most important part of any credit report is information on how you’ve paid your bills. Past payment history is used to help predict how likely your business is to pay on time in the future. That means you need accounts that will report to business credit bureaus, and not all do. Ideally you’ll want to establish at least two to three credit accounts with companies that report. More can be helpful as your business grows.

These may include:

  1. Suppliers and vendors 
  2. Business loans and financing
  3. Credit builder accounts
  4. Business credit cards

No lender or vendor is required to report to business credit; some do and some don’t. Some may report to one or two of the major commercial credit bureaus, but not others. So if your goal is to build business credit, you must choose accounts that report. 

Why is this important? If you don’t have any accounts with payment history, you’ll likely have no business credit report or a report with a low credit score. 

5. Open a business credit card

Opening a business credit card that reports to the major commercial credit reporting agencies is a great way to establish business credit. You can benefit from perks such as cash back or travel rewards, but you can also use one of these cards to build credit. 

Most small business credit cards will use the owner’s personal credit scores and income from all sources to determine if you qualify. That means they are available to startups as well as established businesses.

You definitely should have at least one open business card if you qualify, but more than one can also help. That way, you may be able to access a higher credit limit to increase cash flow. However, be sure to use caution and avoid getting overextended as that can hurt your business credit scores. 

If you don’t qualify for a business credit card, you can skip this step but come back to it in the future when your personal credit history has improved. 

Why is this important? Business credit cards can help establish credit when paid on time. 

6. Pay on time

Payment history is the most important factor for any type of credit scores, and especially so for business credit. Business credit reports use a term called, “Days Beyond Terms” (DBT) that describe how many days beyond the due date a payment was made. For example, if your terms with a vendor is “net-30,” and you pay on day 32, the account will be reported as 2 DBT. Yes, that means late payments can affect your business credit score if you pay just a day or two late. 

Pay on time or early if you can, and you may build your business credit score more quickly.

Why is this important? Payment history is the single most important factor for building business credit. 

7. Monitor your credit

Diligently monitoring your business credit history can help you monitor your progress as well as spot mistakes. If you do find an error, be sure to file a dispute with the credit bureau reporting the mistake. 

Be sure to check your credit reports and scores with more than one major credit reporting agency to find out whether your accounts are helping your scores, and if not, consider adding additional credit references.

Why is this important? Monitoring your business credit can alert you to problems so you can investigate further.

How Long Does It Take to Establish Business Credit?

It may take a few months before new accounts appear on your business credit reports. Once they do, you’ll need several months of on-time payments to establish a good business credit score. Whether you have a new business or one that is well-established,  if you take the steps above, you may be able to establish a good business credit rating in several months to a year. 

What Is the Starting Credit Score for a Business?

Business credit scores have different ranges. The Experian Intelliscore and the D&B Paydex score both start at 0 and go up to 100. Other scores may start at a different number. If your business hasn’t established credit, you may have a low credit score or no credit score at all. 

FAQs

This article was originally written on December 6, 2019 and updated on September 26, 2022.

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288 responses to “How to Establish and Build Your Business Credit

  1. My business was established in 2009. My DUNS account was for the first 2 years in Harbor Springs, MI & but not from 2011 to current. My company was located in Harbor Springs, MI (2years), and now it’s located in Gaylord, MI (13+years). Why didn’t my DUNS account information transfer to my Gaylord address?

  2. Hello,
    My Dunn score has never appeared. It states I don’t have enough data information but provide them all my business information with documentations. Can someone help or do I have to contact Dunns?

      1. According to DNB documentation, “A Paydex will not be calculated for Businesses with less than three experiences.
        There must also be two suppliers reporting trade on that Business for a Paydex to be calculated.”

  3. why my duns score does not appear? I have an active account with nav and is not reporting neither, I have my duns number and you don’t show it

  4. I’m new to this I’m trying to get a credit line started with my business I also signed up with you all and I signed up with a Devin card and would like to more information on this site

  5. HELLO ON MY EXPERIAN ACCOUNT WITH NAV THAT IS NOT MY BUSINESS. HOW DO I GO FOWARD IN TAKING THAT OFF? THANK YOU

    1. Sam I actually called d&b and they stated that we as business owners have to report your business credit with D&B for a subscription fee

  6. I want to know why all the info is not updated. Like my business has been open longer than what it states. I have a dunns and ein,that does not show

    1. Where are you seeing this information? If it’s on one of your business credit reports then you may need to dispute it with the business credit bureau. If it’s on a Nav account please reach out to customer support: support@nav.com or (855) 226-8388

  7. I have my dunn and BradStreet number and I also have my EIN number and needs to know how could I connect my accounts so that I can start getting credit and order to establish more credit for my business Thank you

  8. how long does it take to report to my business credit if i purchased a plan with you guys

  9. I have DUN and Experian reports on my NAV but my business can not be found so how do I add it?

  10. Hi I’m Trinetta Stitt
    Small home business owner
    Yes I have my D.U.N.S
    EIN numbers I also have license
    Jus looking for a small grant to get started I’m also registered in with SAM
    So can someone lead me to a Grant
    I don’t have revenue because I don’t have the ball rolling yet Thank You

    1. I have my business for 3 years and I got my Duns recently
      There is some traidline report on my business but I don’t know what is it also the address of my business not correct I need to change it. Can someone help me with that please

  11. Hello
    I need to cancel payments to D&B how or where to I call or message?
    Thank you in advance:]

  12. Article provides great and detailed insight on Business Credit and what’s needed step by step

  13. How do I have my business trade purchases made with my personal credit card transferred to show, I have business accounts in excellent standing.
    Yes, I see I need to open a business credit card but I have avoided that since I have 2 AMX personal cards that I use for business purchases.
    I do have a business checking account with a business debt card.

  14. We’re do I go for the Experian business boost I think I pay for it already but my Nav personal credit is not correct my Experian personal I pay for is way higher than what Nav has so I need some help with both business and personal.and my dun and Bradstreet number is not showing up on Nav why not.

    1. Guessing it’s not rocket science, But your problems sound very similar, and that I should reach out to Nav cus supp??

  15. I’m looking for any sound advice concerning my interest in building a business,so I did get some information that I needed. Thank you.

  16. Where can I find my Paydex score and how do I maintain it? Payments, reporting trade lines etc?

    Basically, if I do not have one then how can I obtain it?

      1. Hi Gerri, I have the Nav Boost & I still have no paydex score. I have NAV since last year, should I contact support? or DUNS?

  17. When it says i need 3 accounts reporting to generate a score does that mean 3 different accounts (ie quill, nav, summa) or three (or more) different transactions from at least one account?

  18. If I put it on auto payment would it be better than paying once a month regular when is my payment due and how can I pay early

  19. I already have 3 trade lines. I also have made a couple of payments. Can I expect to see those reported on my Nav account?

    1. Hi Joe – Just to be clear, your Nav accounts shows you credit data from Dun & Bradstreet, Equifax and Experian. So if your trade lines to report to any of those bureaus, then it should appear on your reports you get with Nav. If you have further questions you can reach out to Nav customer support at support@nav.com or (855) 226-8388.

    2. yes im in the same position as Joe here i already have 3 accounts also when will they report on my nav account do i have to upgrade my account or something ?

  20. Why I don’t see my dun and Bradstreet paydex score. I just called them in they say my business paydex score is 80

  21. I keep getting the error message each time that my business cannot be found on Equifax on NAV, I do not know what the problem is, please can someone help me, I need help

      1. Hi how are you I can’t find my business on Experian can you call and help when you guys open thanks

          1. Hey, I have been doing business for three month and I have been able to asset my company credit score is on Dun& bradstreet. Please Advise.

      2. Hi, I just enrolled in the credit boost program but it’s saying it can’t find my business. can you help me on how we can get it fix that way It can start building my business credit? I just started my LLC last month so I have no business credit as of right now. Thank You and have a good day!

      1. Hello I’m hoping to establish my hobby into an established community business. For years now I have voluntarily cleaned up the streets, sidewalks,empty lots and “common areas” throughout my neighborhood, and many private residences of people that appreciate my efforts and considered it a necessity. I’ve always considered it a duty to positively impact people by providing a clean environmentally sustainable, and pleasant atmosphere to those that choose to walk pets,exercise, bike, or enjoy a cup of tea outside to confines of home. This has lead to many request for private services.
        I have discovered that many disabled homeowners,senior citizens, veterans, single parents, even struggling employed adults become overwhelmed in the upkeep and maintenance of their landscapes. To this conclusion I have and continue too provide my expertise in a effort to allow my community to share some free time to enjoy their lives. I wish to establish a service in (non-profit) sector of the small business administrations grants and support division. I need to learn more and seek all available advise and logistics required to become established and have the ability to expand these so desperately needed services. Please assist in my efforts at the earliest possible juncture in ,”I’m sure” your also busy life and professional responsibilities. Thank you soon much.

      1. Hello I am trying to purchase the Business Loan Builder and I am not seeing the option. I really need this in order to grow my business credit.

    1. Hi Sheldon,

      We show the information provided by the major credit reporting agencies. Business credit is not as standardized as consumer credit in general. Not all accounts show up on those reports so that may be the reason you’re not seeing them. However, you can always reach out to our customer support team with questions and they will be happy to help if they can.

  22. How can I get my business credit to start to repot to Equifax. My sins and other show up as A, it’s not reporting to Equifax. Please inform me how to do this.

    1. It’s really up to your lenders and vendors whether they report to Equifax or not. There’s no way to require they do so. Business credit reporting is not as uniform as consumer credit unfortunately.

  23. Hello I am wondering how to get my paydex score to show up I got a paid subscription for Nav so I am not understand why some are saying they can find my business like Equifax and I have a DUNS number and its not connecting

    1. Stacy – Please feel free to reach out to Nav’s customer support team to see if they can help you troubleshoot. Also keep in mind that for Paydex you should have at least two (and better three) accounts reporting.

  24. We moved our business from one location to another and ALL of our business credit info went POOF into thin air as though we never even existed. We didn’t change our LLC, we didn’t change our EIN, we didn’t change our sales tax license or anything but our physical address. Hell we didn’t even change zip codes, we moved 2.5 miles down the street.

  25. Hello I am Brian V.,The Owner of B NICE CUTZ LLC, I was just checking to see if my business is registered with The Credit Bureau’s ,thanks

  26. Hello thank you guys for the help .I’m pretty much new to this but I’m ready to learn . So thanks in advance

  27. Please update my personal credit score….this score has not been updated since August. My current Experian is 776 and my Transunion is 735

  28. So I have Nav’s top plan. How come it keeps asking me to upgrade my plan to Boost. I was under the impression that both plans report to Duns and the others that Nav is one of our Tradelines…. Which I do have 2 tradelines now. Shirtsy and Uline. Hopefully they will report within 30 days. Not really sure how that works.

  29. This doesn’t explain how to get a particular credit monitor company (Equifax business) to report on your credit history

  30. Is this a scam? It’s been more than four months but nothing changed. It still asking me to upgrade , it’s not honest and fair at all

  31. Very informative. I was given names and info on vendors that i can open accounts with. These vendors ,or any other for that matter, cant be found on the other sites ive tried. Also, the other sites i used were paid

  32. So I have bank account several credit cards accounts and trade lines, I have a tax id# web site but you don’t see them so I don’t see the helpfulness of this

  33. I have all things completed on my dashboard, business credit is already established, however, it is not showing up connecting with Equifax. Please show me what to do to fix this problem.

  34. I’m just starting my business this year on 4-30-2021 and I’m trying to establish business credit, what is it that I need to do.

  35. is it something else I need to do to establish buisness credit I purchased the business boost and I still dont have a score

  36. I don’t know how my business credit is low I never use it plus I been in business 16 years no credit cards or loans on for my business so how is my score so low please help me understand??????

    1. The most common reason we see for a low business credit score is there are few accounts reporting. That means there is just not enough information to predict how bills will be paid in the future. Good thing is by adding some references that report you may be able to change that pretty quickly! Our Build Business Credit Checklist may help. You can download it free on this page.

  37. Please help my business has fallen almost to the ground. I caught the virus but beat it so I thought!
    Until one morning I woke up blind and couldn’t see for four days due to my diabetes turn for the worst. My doctor let me know that the virus left me with the side effects. I’m a clothing designer and due to my vision been off and on. I can’t sew, draw, digitize my clothes anymore

  38. Hi,

    I noticed something on my report that doesn’t look familiar. I tried to email and get assistance since I did see a phone number. The person reached out and asked what I needed…I replied and they never responded. HELP!!

  39. I’m trying to apply for business credit. But I don’t know the proper way. Can anyone help?

    1. Are you talking about your business credit reports? You’ll need to correct that with the business credit reporting agencies directly. If you are a Nav customer you can reach out to customer support for instructions.

  40. They have the wrong company I have 2 of them. How would I be able to change that. I paid for the premium membership.

  41. My credit builder credit is not showing me my anything what am I paying for it keep say up graded I did already

  42. I am trying to change my banking information on the NAV site and I do not know where to go? CAn you help me? Nav hasnt reached out to me
    Thank you.
    The article was most helpful. Are these steps of “to-do” in order?

    1. Adriene, Feel free to reach out to Nav’s customer support team at (855) 226-8388. And generally they are in step-by-step order, yes, though there is some flexibility based on your individual circumstances.

  43. Hello. I see that my business have two different addresses showing for Nav and Duns. Will this affect my credit reporting and building credit? Should I get one of them corrected? One is a business address and the other is a virtual address.

    1. Givanni – I’m not sure what information you are looking for but feel free to reach out to Nav’s customer support team for more help. You can reach them at (855) 226-8388.

  44. Ten presente que tu firma puede ser falsificada es decir que esta no es un elemento de seguridad suficiente por ello guarda tu chequera en un lugar seguro y en caso de robo o extravío reporta a tu banco de inmediato.

  45. Great day. I would like to get a dun and Bradstreet profile setup for my non profit and get the credit lines established. Is this something that you do?

    1. Hi David – We give you resources like this one so you can do it yourself but we don’t do it for you. If you want to do it yourself, sign up for a free Nav account then use our Build Business Credit Checklist (you can download it here) to walk you through the steps.

  46. Hello, I’ve upgraded my account to NAV boost and now I don’t see any info for my Equifax score or any added tradelines.

  47. I order a package on April 30, 2021 for NAV Boost & It’s not reporting. I purchased my business booster on a 3 months plan, but I haven’t gotten an update. I no longer see my Equifax score on NAV, please let me know what happened. Thank you,

  48. I order a package for NAV Boost & It’s not reporting. I tried to contact you all, but I haven’t gotten an update. I purchased my business booster on a 3 month plan can you or anyone help help me?

  49. I signed up for the Boost and it still isn’t showing up on my account.. What can I do?

  50. Thanks for sharing the feedback in this article. I found the information very helpful for 1st time start ups.

  51. No one is competent @ NAV i talked to knows about credit and how it works , And they are so busy that they don’t even bother to call back or take calls ,

    Seems like Your owner is struggling to find right people on board .

    Yes true i am your customer same way i am giving business to you as well , Very dissatisfied performance by your TEAM .

  52. I’ve already paid for the business credit builder subscription on Nav and not only haven’t seen any type of support from the site but no changes have been made to my app indicating that I’ve paid for an upgrade because it keeps asking for me to make an upgrade to the plan I have AND it wants me to sign up for a new account when I try to claim my business on Dun and Bradstreet. Am I doing something wrong or something?

    1. I am going through the exact same thing. I see all the credit scores but it still is asking me to upgrade which makes absolutely no sense.

    2. I had to reach out to DINS PERSONALLY. They have my business listed wrong also in there directory it has me as a dry cleaning business when I’m a trucking company. Lol. Have to contact them directly and dispute the inaccuracies with them away from this site. I have done this Monday Dec 20, 2021.

  53. How do I change the address on my dun & brad profile? My address has a error in it, and I believe this is the reason I have not grown a paydex score

      1. What is the coupon code. I wanted to purchase your boost and it asked for a coupon code

  54. Hello,

    My duns and bradstreet score has not been updated and I have brought from Uline, Quill, Summa and so forth, please assist.

    1. April – it often takes a couple of billing cycles for the credit report to reflect new accounts. If they are not reporting after two months, the first step is to reach out to the company to ask the status of reporting.

  55. All of the major small business credit cards check the owner’s personal credit. That doesn’t mean that it’s not helpful in terms of building business credit. Keep in mind that D&B Paydex is going to be based on trade references (vendors and suppliers) not bankcards.

  56. Hi Gerri, here is a very good chart: Business credit card information reported on owner/cardholder’s personal credit reports.
    Do you have a chart that is about store tradelines, and Gas cards?

    Thank you

  57. I have dun and bradstreet and equifax business credit report ; but not experian business credit report.

    1. You can sign up here or upgrade your free account. If you have any problems contact our customer support team from your Nav account. Thanks for your interest Monique!

  58. I am just starting to understand business credit although I have called myself being in business for years. i will not beat myself up, but dive into all that this sight has to offer and learn , grow and share1 thank you

  59. Does the address of my business have to match the address on the business bank account in order to obtain business credit or vendor accounts? I’m using a virtual address for my business but banks need a verifiable physical address to open an account. I know it cant be a P.O. Box but the address does have a suit number for professional appearance. My virtual address is registered with the state for my business as well as on Dun and Bradstreet, my phone service etc… but the bank account would have to have my home address in order to open it. Just curious if that will be a problem……?

    1. If you have the option of providing a mailing and physical address when applying for accounts (and in most cases you will) fill out the application the way you did with the bank.

    1. I signed up for the 39.99 Business Boost and everytime I look on the main page of my account it is saying I have no reporting trade lines. But I purchased one? I’m not sure exactly what’s going on

  60. I am looking to grow a credible business line of credit. What is your advice and where do I start too building positive line of credit.

  61. Is the company Nav similar to the company Credit Suites? I’m looking for a company that can help me with step by step direction on how to build my startup business credit and help with getting startup loans and grants. I don’t have my business register yet because I don’t really know what business title would be good for my startup company. I need guidance from start to finish. Do Nav help with that.

    1. Nav offers a free account option that can help you build business credit. Feel free to sign up for a free Nav account and if you have questions reach out to our customer support team. If you need more one-on-one assistance a service like Credit Suite may be a good fit for you.

  62. If your product works well Nav, perhaps try using A different approach. For example provide all new members a few months of your service so that their business credit score can go up. And then it’s a done deal because why would they not continue to go with your services after you’ve helped out?!?!
    Give a little….. and receive your return later.

    1. Many of our customers use a free Nav account, which is free forever. Maybe you are talking about a paid Nav account? In that case we can’t report a payment if there hasn’t been one. (The credit bureaus wouldn’t permit that.)

  63. Very good article for entry level business credit info. I found it to be very informative and have me the key points to follow up on in my future research. Also it wasn’t weighed down with terminology or concepts alien to me.

  64. Hello, I have an LLC with a Duns score of 80 and an Experian score of 91. My personal credit scores are in the mid to high 730’s. I’d like to obtain A business credit card, but all of the credit card companies ask for my SSN. How do I keep my business and personal credit cards separate?

  65. Hello I have to 2 buisiness Ed that is like to learn to set up buisiness credit one is a non profit and the other is a startup

  66. Hi Gerri, I was denied the SBA Covid Relief Loan because they’re running my personal credit which is now 620. Turns out I don’t have enough business credit as per Experian. I lost my job in March due to Covid and been getting the runaround from unemployment to file a claim. I’ve run out of money, I can no longer support my business or myself, I’m now 7 months behind in rent. Any financial advice for me? Any way to turn things around quickly or should I close up shop?

    1. Kia – I am so sorry to hear this. I’d recommend that before you give up you reach out to your local Small Business Development Center (SBDC) or SCORE mentor. They offer free business assistance. Find yours at SBA.gov/tools.

  67. Hello when you have vendors that report to the business bureau and you have establish a score of 80% or more .. do you still have to order every month from them or can you just order every two or three months

  68. What is the quickest way to build up business credit? What are some different vendors do you recommend for a travel business owner like myself that’s has a Duns Number?

  69. How about establishing credit for an online clothing business that hasn’t launched yet? How can I establish business credit if I haven’t begun manufacturing yet? (This is what I need the funding for, to pay the manufacturer)
    🙂

    Should I start out using it to pay things like my website fees, marketing costs or materials? (Pre-launch)
    THEN launch it after I’ve established good (but very new and small) business credit?

    Thank you!

    1. You can start building business credit with vendor accounts. You can purchase things you need now for your business from vendors who report to business credit bureaus. (You don’t have to make major purchases: you can purchase things like copy paper or office snacks.)This article will help: Easy net-30 Vendors. You can also get a small business credit card in the name of your business. This article will help there: Which small Business Credit Cards Report to Personal Credit?

  70. During high risks of identity theft, it’s unecessary to ask for a full SSN to access credit profiles, the last four digits only will provide better protection.
    Thanks,

  71. hello, I am starting an e-commerce Business. and I’ve done all the start-up requirements. i was told by a bank loan officer to establish good credit. yes do all the above but also business must report their losses and also along with the listed above things they need to establish paper trails with checks through a banking institution. credit cards and checks as well as reporting profit and losses and doing yearly taxes on time. paying early. was I told correctly?
    thank you

    1. Banks often have stricter requirements than other small business lenders. Not all lenders are going to require that level of financial detail. However, many lenders will want to see proof of revenues, so having a business bank account is helpful in case you need to provide bank statements.

  72. I have been following your advice on building business credit this far. Great information actually I have been using my funds to open a retail store as time has come to seek a business loan , I am quickly approaching a one (1) year Anniversary in March. I have above average credit score (upper 700’s) . For loan for inventory would I need a business plan?

  73. Hi, I have a Corp that has been dissolved however I can get it reinstated it has no credit file but it is a 16 year old Corp. Would I be better off reinstating this Corp. Or start a new one to build biz credit faster and easier for time in business for loan applications ?

    1. My guess is that the old Corp isn’t on the credit bureaus’ radar anymore. Have you tried to look up business credit on it? You can certainly reinstate it but the benefit– other than maybe time in business– might be minor. But it also wouldn’t hurt as long as there is nothing negative.

  74. I am a commercial lender (for real). Here is what my 15 years of experience has taught me when it comes to business credit and lending.

    Business credit does not exist. People have a score over their heads from the big three. Business do not and are not tracked by the big three. There is only a couple companies that track business credit and they do not do a very good job at it. Therefore, they hold no weight what-so-ever in when it comes to lending with financial institutions. If you have an amazing score from one or all of these companies you will get a firm pat on the back, an “atta-boy” or maybe even a gold star on your forehead. All finical institutions do what is called a risk rating. and the idea is you want to score low. Here are some of the categories that most financial institutions look at for establishing credit with them:

    1. Cash on hand, lenders love to see the money the accounts collecting dust, and Love to lend to companies that don’t need it.
    2. Type of industry (some industries are riskier than others.)
    3. Vendors or how they make money.
    4. Length of time in business.
    5. Collateral
    6. Debt coverage service ratio
    7. Signers and what there personal credit looks like.

  75. Our HOA has a management company that insists on paying our bills with our checking acct. instead of a cc. We don’t have a cc yet, but now it looks like we would never use one. Should we look for another management company or are there other ways to build our credit other than utilizing vendors who report to the business credit reporting companies?

  76. Mine jumped overnight. Consistently 810-840 then i used 100% of my home equity loan to buy land next door. Went to 678. I called my cc companies and asked them to raise my limits so I ended up with more open credit than what I owed. Now 5 months later I am high 700’s but psychologically need to get over 800 again

    1. I’v been building business credit for about a month now, I just paid my 2 invoices on time a week in advance. But my personal credit is shot always has been (I’m working on it now, paying down cards and on time payments). How will I ever get a business credit card or loan? I have an LLC that I might transfer to a C-Corp. I only want to use my business credit not personal is that even possible.

  77. And no mention of the importance of a paydex score. This is crucial in the world of business credit. It seems no financial institution mentions this

  78. So I have a cleaning service And am sole proprietor am thinking of making it a LLC so what would I have to do for it to become LLC would I have to start all over again with my tax id or a short cut to just go from sole proprietorship to LLc ?

    1. Hi Tony, according to the IRS, sole proprietors looking to incorporate will need to obtain a new EIN. There may be exceptions, for example you may not have to obtain a new EIN if you are the sole owner, choose not to be taxed as a corporation, and you have no employees or excise tax liability. I would suggest, however, consulting a lawyer or incorporation expert for help with your specific business situation.

    2. Go to MD taxes assessment and go to legal form LLC. Printed and take it to Baltimore
      And 150$ cash
      And you will change it to LLC in the same day

  79. finally my d&b score is posting I have 5 trade lines in tier 1 I want to move on to next tier I don’t want to jump the gun so I ask what should be my next steps to apply for ? I have no business credit card just a business debit card

    1. Do you know what your D&B Paydex score is? How old are those tradelines? And how is your personal credit?

      1. Paydex score is 80 personal credit is in low 600’s I recently got approved for a capital one spark business card only a 500$ limit I received another offer from capital one for another business card. But I rather try someone else if I would have a better chance to get a higher cl ?

  80. I have a Dunns profile, a business address, business phone line, and my personal credit score is just under 680. I haven’t been able to get any lines of credit for my business where can I find venders to help build tradelines to my business credit.

    1. There are a number of large vendors that offer business tradelines and report to business credit reporting agencies, such as Office Max, Staples Business, Best Buy and Kinko’s Commercial. You might also want to ask any of your existing vendors or suppliers if they offer terms or can report your payment info to business credit agencies.

      1. Try Amsterdam Printing, Global Industrial, Grainger, Laughlin and Associates, Monopolize Your Marketplace, Quill Office Supplies, Strategic Network Supplies, Uline. Also lookup Credit Suite on youtube, and watch their videos. It explains a lot of this.

        1. Quill, Global Industrial, Grainger, offer more than just office supplies, I am in the mobile food business and these companies offer products that I use for mobile vending.

  81. I own an LLC that in turn owns majority share in two other LLC partnerships. I have EIN, bank accounts, and credit cards for all 3 entities. Is there a way to use the combination of the 3 entities financial activity to establish business credit?

  82. I have an entity established and have for more then 3 years but have never been able to obtain financing. I just filed bankruptcy due to bad personal credit which in turn have provided me a better credit score now then I had before I filed. It is now discharged but I don’t even know where to begin with establishing business credit any help would be appreciated. Thank you.

    1. Nadeen, you’re in the same boat as a lot of our small business customers. I suggest you start by getting a business credit card(s) and paying them off each month. Places like Home Depot or Staples will extend a small amount of credit to most businesses. Nav also offers a free business credit builder tool (BusinessLauncher) that can walk you through the steps. It’s completely free (no cc required ever) to sign up with Nav.

      1. I purchased the NAV Credit Booster & do NOT show a score and CANNOT get a representative from NAV to help with my business reports, I understand NAV is in business to make money but, I paid for the service and feel NAV should help explain what or if I’m doing something wrong,

    1. If you have a business and a personal credit score you’ll probably be able to establish credit with some vendor accounts that will be more interested in the age of your business than your (personal) age. But take a look at the application. If they ask for your age, you may want to ask them directly whether that’s an issue before you apply.