Building Strong Business Credit: Tips for Entrepreneurs

Building solid business credit is one of the smartest moves you can make for your company’s long-term health. Here’s a no-fluff roadmap:

1. Separate yourself from the business. Form an LLC or corporation so your company’s credit stands apart from your personal score.

2. Grab an EIN. This free IRS ID is your business’s Social Security number—use it for taxes, banking, and credit applications.

3. Open a business checking account. Run every dollar of income and expense through it to create a clean, verifiable paper trail.

4. Add credit lines that report. Start with a business credit card and a few vendor accounts (net-30 terms, office supplies, etc.) that share payment data with Dun & Bradstreet, Experian, or Equifax.

5. Pay early—always on time. On-time or early payments build a strong PAYDEX score and impress future lenders.

6. Watch your reports. Pull your D&B, Experian, and Equifax business files regularly to fix errors before they cost you money.

7. Leverage vendor relationships. Use trade credit with multiple suppliers; every positive transaction strengthens your profile.

8. Check out CDFIs. Community Development Financial Institutions often provide flexible loans and credit-building products for growing businesses.

⚡ Pro tip: Stay on top of cash-flow planning, promote your brand aggressively, and keep tight books. Discipline today equals cheaper capital tomorrow.