Business credit is your company’s financial track record, maintained in files by credit bureaus such as Dun & Bradstreet, Experian, and Equifax. Separate from your personal credit, suppliers, lenders, and card issuers will generally review this history when you apply for credit, as it reflects how you pay vendors, manage credit cards, and repay loans.
A strong business credit profile can help you secure better payment terms from suppliers, qualify for business credit cards with higher limits, and access financing without relying solely on your personal credit. Our guide walks you through the process step by step, with links to in-depth tutorials covering everything from setting up your business and understanding how business credit works to opening credit files, building credit with vendor accounts, adding credit cards, monitoring your scores, and using your business credit to secure more financing.
Disclosure: planning.net may earn a commission if you apply through links on this site. Credit bureau rules, scores, and vendor terms change, so confirm details with each company. This guide is general information, not financial advice.
Start Here
Pick the page that matches where you are, then come back to the steps below. New to business credit? Start at step 1. Already know the basics, then skip to step 4 or step 6. Or use the quick picks below to do a deep dive into a specific topic.
- Basic Business Setup — check your SIC code · get an EIN · get a D-U-N-S number
- Build Credit History — business credit bureaus · open a business credit file · Dun & Bradstreet
- Net 30 Accounts — for new business, tier 1 vendors, tier 2 vendors
- Monitor Your Credit — how to check scores · free credit checks · bureau credit reports
- Credit Building Tips — mistakes to avoid · credit builder programs · improve PAYDEX score · business credit in Canada
- Credit Card Tips — What cards to apply for and when · card limits and increases
Build a Solid Foundation
Before any bureau or vendor can track your business, they need to be able to identify it. These basic steps can make your business easy to find and match to your payments.
- Choose the right SIC code. Lenders can judge a business to be high risk based on their business classification code alone.
- Register your business with your state (LLC, C Corp or S Corp, etc.), and use the same exact legal name on all credit applications and business indexes.
- Create a business phone number, email, and address, and keep your name, address, and phone number (NAP) identical on every business index and credit application.
- Get an EIN. A free employer ID number from the IRS that identifies your business to vendors, lenders, and credit bureaus.
- Get a D-U-N-S number. A free nine-digit business ID from Dun & Bradstreet needed to establish D&B credit profile and PAYDEX score.
- Open a business bank account to keep your personal and business finances separate and to more qualify.
Build Business Credit History
Your credit files collect the information that vendors and lenders report about you. Some bureaus create your file when a company reports on you, and some let you set up or claim a file yourself.
- Creating a D-U-N-S number will give you a Dun & Bradstreet file to build on.
- Check each file for errors in your name, address, phone, and business type, and dispute anything that is wrong.
- Keep your information the same everywhere so payments match your file.
For more in-depth info, see how to open a business credit file and build credit history.
Business Credit Blueprint
Understanding who tracks your credit, and what they track, makes the rest of the process easier.
- Business credit reporting. The major bureaus are Dun & Bradstreet, Experian, and Equifax. Other notable agencies that also track business data include Creditsafe, SBFE, Moody’s.
- Credit reports and scores. A report lists the data on your credit file, such as your payment history, company details, and public records. A score summarizes that data in a quantifiable number or grade that can generally ranges from bad to good to excellent. Each bureau uses its own scoring models and scales in their business credit reports, so scores from different bureaus may not be directly comparable.
- Who can see them. Unlike personal credit reports, business credit reports can generally be viewed at any time by others, such as potential vendors, lenders, and partners.
Open Vendor Accounts
Net 30 vendor accounts are a common first-step to building credit history as they generally have the easy credit approval requirements. When vendors report your payments, they become part of your business credit history. Vendors are not required to report, so when using them to build business credit, make sure you know which bureau they report to and when.
Here you can browse our list of starter accounts, Tier 1 vendors, and Tier 2 vendor list. Generally, we would only recommend making net 30 purchases for products and services you actually need. For normal business spending, a secured business credit card that regularly report to credit bureaus can also act like tradelines that build up your credit history.
Add Store Accounts and Cards
After you have a few vendor accounts reporting on time, you can add business credit cards and store accounts. These are usually more selective than starter vendors.
- Apply selectively. Many business cards will check your personal credit, and every application can leave an inquiry. Know what credit to apply for and when before you start.
- Understand your limit. Issuers set limits based on factors such as credit history, revenue, and your debt utilization ratio. After you establish a track record of on-time payments, you can work on getting a credit limit increase.
- Keep balances low and pay on time. Using a smaller share of your card limit and paying on time will generally help your credit.
- Browse business credit cards and store accounts.
Monitor and Improve Credit Scores
- Practice credit monitoring regularly by checking your business credit score and reports.
- Pay on or before the due date. You can improve your D&B PAYDEX score at Dun & Bradstreet by paying invoices early. Paying on time is generally treated as the baseline and an 80 score, while paying early pushes your score higher.
- Fix reporting errors quickly. If something on your file is wrong, contact the bureau right away to dispute it.
- Take the time to get it right. With very little effort, you can easily avoid common business credit mistakes, such as using inconsistent business information, paying late, or applying for too much credit.
Use Your Credit for Financing
Lenders will also look at your time in business, monthly revenue, sometimes your personal credit. When that is added to a track record of on-time payments across several accounts, you are in a stronger position to apply for business credit cards and business lines of credit, or to get a business loan.
Keep your older accounts open and keep paying on time. Your payment history is what you are building.
FAQ
Business credit is your company’s credit history, tracked by business credit bureaus that assess its creditworthiness. Suppliers, lenders, and credit card issuers use it to evaluate the risk of doing business with your company, based in part on how consistently you pay your bills and invoices on time.
Mostly, yes. Business credit tracks your company’s credit history, while personal credit tracks yours. However, credit underwriters may check your personal credit or require a personal guarantee when you apply for a small business loan or credit card.
Business and personal credit are generally separate. However, many bank-issued business credit cards require a hard inquiry on your personal credit for approval. Some store cards, high-limit vendor accounts, and alternative lender loans may also require a personal credit check, a personal guarantee, or both. Hard inquiries can temporarily lower your personal credit score, while missed payments or defaults on a personally guaranteed account can damage your personal credit.
You can see your first business credit activity within 2–3 months. Building credit across multiple accounts typically takes 3–6 months. Gas and store cards may take 6–12 months, while credit card issuers and banks often look for 1–2 years of credit history.
Yes. an EIN is almost always required. Most banks, vendors, and business credit bureaus will use it to identify your business and assess its creditworthiness.
Yes, if you want to build a credit file with Dun & Bradstreet or apply for government contracts. Applying for a D-U-N-S number is free and helps vendors report your payment history.
Dun & Bradstreet, Experian, and Equifax are the three leading business credit bureaus. Creditsafe, SBFE, and Moody’s also track business credit and payment data.
Rating scales vary by bureau and scoring model. On Dun & Bradstreet’s PAYDEX scale, a score of 80 means you pay on time, while higher scores indicate earlier payments. Depending on the loan type, many banks and SBA lenders use the FICO SBSS score and may require a minimum score of 180–220.
Not usually in full, but you can access some free scores and indicators. Nav’s free membership offers basic business credit score ranges from D&B, Creditsafe, Experian, and Equifax. Dun & Bradstreet’s free Credit Insights service provides an overview of your business credit profile and its creditworthy trends.