Quick answer: To build business credit, set up your business as a separate legal entity, get an EIN and a business bank account, open accounts with vendors and lenders that report to business credit bureaus, and pay every bill on time or early. Over time, this creates a credit history in your business’s name that can help you qualify for better financing terms.
Business credit vs. personal credit
| Business credit | Personal credit | |
|---|---|---|
| Tied to | Your business (EIN) | You (SSN) |
| Main bureaus | Dun & Bradstreet, Experian Business, Equifax Business | Experian, Equifax, TransUnion |
| Common scores | PAYDEX (0–100), Intelliscore, others | FICO and VantageScore (300–850) |
| Who can see it | Generally available to lenders, suppliers and others | Protected by consumer credit laws |
Step-by-step: how to build business credit
- Form an LLC or corporation so your business is legally separate from you.
- Get an EIN from the IRS (free).
- Open a business bank account and run all business money through it.
- Get a business phone number and address and keep your business information consistent everywhere.
- Get a D-U-N-S number from Dun & Bradstreet.
- Open trade accounts with suppliers that report payments to business bureaus.
- Get a business credit card and keep balances low.
- Pay on time or early. Early payment can raise some business scores.
- Monitor your business credit reports and correct errors.
Does business credit matter for a business loan?
Yes, but it’s only one factor. Many lenders, including Brookestone Funding, also look closely at the owner’s personal credit, monthly revenue, time in business and bank statements. Brookestone’s minimums are 2+ years in business, $30,000+ monthly revenue and a 600+ credit score.
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- Small Business Loan Glossary: 40 Terms Explained in Plain English
- Same-Day Business Loans: How They Work and How to Get Funded Today
- Business Term Loan vs. Line of Credit: Which Is Better for Your Business?
Frequently Asked Questions
How long does it take to build business credit?
Often several months to a year of on-time payments to reporting vendors and lenders before a solid business credit profile appears.
Does my personal credit affect business loans?
Yes. Most small business lenders review the owner’s personal credit along with business revenue and history.
What is a good business credit score?
On the Dun & Bradstreet PAYDEX scale, 80 or higher generally indicates on-time payment. Other business scores use different scales.
Can I get a business loan without business credit?
Yes. Many lenders approve established businesses based on revenue, time in business and the owner’s personal credit.
Need financing? Brookestone Funding offers business term loans, lines of credit and SBA loans from $10,000 to $2,000,000, with same-day funding available for qualified businesses. We’re rated 4.5 on Trustpilot by more than 240 customers. Apply in minutes, see our business loan options, or call 212-258-0602.
