How to build business credit.
Personal credit follows you. Business credit follows your entity. Building business credit lets you access financing without personal guarantees, increases credit limits, and reduces dependence on your personal FICO score. This guide covers the steps to build business credit from scratch: DUNS number, vendor accounts, business credit cards, Net-30 trade lines, and how the major business credit bureaus calculate scores.
Start here.
Dun & Bradstreet (PAYDEX), Experian Business (Intelliscore), Equifax Business (Business Credit Risk Score).
Free identifier from D&B. Required for many business credit applications, government contracts, and credit reporting.
Building established business credit takes 12-24 months. Patient, consistent reporting builds the file.
Most early business credit requires personal guarantee. As business credit strengthens, PG can be reduced or eliminated.
Net-30 accounts with vendors who report to bureaus are the fastest way to build business credit history.
The full picture.
Form an entity
LLC or corp creates the entity that owns the credit. Sole proprietor business credit is tied to personal SSN; less useful for separation.
Get an EIN
Federal tax ID. Required for opening business accounts and credit applications. Free from IRS, same-day for US founders.
Open business bank account
Required for most credit applications. Demonstrates financial substance. Some lenders verify with bank statements.
Register with DUNS
Free DUNS number from Dun & Bradstreet. dnb.com. Takes 1-3 days. Required for many business credit applications.
Open Net-30 vendor accounts
Trade lines with vendors who report to bureaus. Examples: Uline, Quill, Grainger, Crown Office Supplies. Order, pay on time, build reporting history. 3-5 vendor accounts is a strong start.
Get a business credit card
Even one with personal guarantee builds business credit. Capital One Spark, Amex Business, Chase Ink. Pay in full and on time.
Build payment history
Pay all business obligations on time or early. PAYDEX score (D&B) is based on payment timing: paying early (1-30 days before due) maximizes the score.
Monitor your reports
Check D&B, Experian, Equifax business reports quarterly. Dispute errors. Track score progression.
Avoid common mistakes
(1) Using personal credit for business expenses: keeps credit personal. (2) Missing payments: damages business credit faster than it built. (3) Closing oldest trade lines: shortens credit history. (4) Letting business address fall out of sync: bureaus require consistency.
Scale into PG-free credit
After 12-24 months of strong reporting, apply for credit cards and lines without personal guarantee. Bank of America Business, Amex, and others offer PG-free options once business credit is established.
Common questions.
Is business credit really separate from personal?
How long does it take to build business credit?
What is a DUNS number?
What is a PAYDEX score?
Do all vendors report to credit bureaus?
Can I use my SSN for business credit?
Does my LLC need to be old to get business credit?
What is a tradeline?
Should I check my business credit before applying for loans?
Build the foundation.
Entity, EIN, banking, cap table, contracts, books. Everything funders, lenders, and acquirers want to see.
This guide is educational. Funding decisions require professional advice from licensed attorneys and CPAs.
On the $129/yr Compliance Annual Filings plan, we cover state late fees.
When you autofile your annual report through the $129/yr plan and we miss the deadline, we pay the state's late fee. The guarantee applies to that specific plan and the filings it includes. Other File.Business services are billed at the prices on this page.