Building business credit from the ground up is one of the smartest moves you can make as a business owner. A strong business credit profile can open the door to better financing options, lower interest rates, higher credit limits, and more trust with vendors and suppliers.
But if you’re just starting out, where do you begin?
Here’s a step-by-step guide to help you build business credit from scratch.
1. Establish Your Business Legally
Before you can build credit, your business must be seen as a legitimate entity.
✔️ Choose a legal structure like an LLC or corporation (sole proprietorships don’t separate personal and business credit).
✔️ Register your business name with your state.
✔️ Get a Federal Employer Identification Number (EIN) from the IRS—this acts like a Social Security number for your business.
✔️ Open a business bank account using your EIN.
📌 Tip: Keep personal and business finances completely separate from day one.
2. Get a D-U-N-S Number
A D-U-N-S Number is issued by Dun & Bradstreet, one of the major business credit bureaus. It’s free to apply and essential for creating a business credit file with them.
👉 Apply at dnb.com
Some lenders and suppliers won’t work with you unless you have one.
3. Open Business Credit Accounts
Start small by opening net-30 vendor accounts—these allow you to purchase goods or services on credit and pay within 30 days. Many vendors report your payment history to business credit bureaus, which helps establish your profile.
Popular starter vendors that report to business bureaus:
- Uline
- Grainger
- Quill
- Summa Office Supplies
🧾 Pay on time or early—your payment history is a major factor in your business credit score.
4. Apply for a Business Credit Card
Once you’ve established your business entity and have a few vendor accounts reporting, apply for a business credit card.
Choose one that reports to business credit bureaus (Experian Business, Equifax Business, or Dun & Bradstreet).
💳 Use it for business expenses only and pay off the balance in full each month.
5. Keep Your Credit Utilization Low
Just like with personal credit, keeping your balances low relative to your credit limits helps improve your score.
📈 Aim to use less than 30% of your available business credit.
6. Monitor Your Business Credit Reports
Stay informed by regularly checking your business credit reports from:
- Dun & Bradstreet
- Experian Business
- Equifax Business
Look out for errors or outdated information and dispute anything that’s inaccurate.
7. Build Relationships with Lenders and Vendors
Establishing strong relationships with vendors and financial institutions not only helps you access better terms—it also builds your credit profile over time.
🤝 Ask if they report to the business credit bureaus before setting up credit terms.
Final Thoughts
Building business credit from scratch won’t happen overnight, but with the right steps and consistent effort, you can create a strong foundation for your company’s financial success.
Start small, be consistent, and make every payment count.
Ready to take the first step in building your business credit?
At JDP Credit Solutions, we help small businesses grow through personalized funding strategies and credit-building support.
👉 Visit www.jdpcreditsolutions.com to learn more and start building strong business credit today.