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Small Business Credit Building

Published By Janet Gershen-Siegel at March 2nd, 2018

Small Business Credit Building

Start Small Business Credit Building Today

Small business credit building can really work for you if you do it right. Fortunately, we know exactly how to establish small business credit.

Company credit is credit in a company’s name. It doesn’t attach to an owner’s individual credit, not even if the owner is a sole proprietor and the sole employee of the company.

Hence, a business owner’s business and individual credit scores can be very different. So here’s how to go about small business credit building.

Small Business Credit Building: The Advantages

Because business credit is independent from personal, it helps to secure an entrepreneur’s personal assets, in the event of a court action or business insolvency.

Also, with two distinct credit scores, a business owner can get two different cards from the same merchant. This effectively doubles purchasing power.

Another advantage is that even new ventures can do this. Visiting a bank for a business loan can be a formula for frustration. But building business credit, when done right, is a plan for success.

Personal credit scores depend on payments but also additional elements like credit utilization percentages.

But for small business credit, the scores actually merely depend on if a business pays its invoices timely.

Small Business Credit Building: The Process

Establishing company credit is a process, and it does not happen automatically. A business will need to actively work to establish company credit.

Nevertheless, it can be done readily and quickly, and it is much quicker than establishing individual credit scores.

Vendors are a big aspect of this process.

Accomplishing the steps out of order will cause repetitive denials. No one can start at the top with small business credit.

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Small Business Credit Building: Begin with Company Fundability™

A small business must be Fundable to credit issuers and vendors.

That is why a business will need a professional-looking website and email address. And it needs to have a website hosting bought from a merchant like GoDaddy.

Also, company telephone numbers need to have a listing on

At the same time, the business phone number should be toll-free (800 exchange or the equivalent).

A small business will also need a bank account dedicated solely to it, and it needs to have every one of the licenses essential for running.


These licenses all have to be in the specific, correct name of the business. And they need to have the same business address and phone numbers.

So note, that this means not just state licenses, but potentially also city licenses.

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Small Business Credit Building: Get Started with Working with the IRS

Visit the Internal Revenue Service web site and acquire an EIN for the company. They’re totally free. Choose a business entity such as corporation, LLC, etc.

A small business can begin as a sole proprietor. But they should change to a type of corporation or an LLC.

This is to reduce risk. And it will make best use of tax benefits.

A business entity will matter when it pertains to taxes and liability in case of a lawsuit. A sole proprietorship means the entrepreneur is it when it comes to liability and taxes. No one else is responsible.

Small Business Credit Building: Kicking Off the Process

Begin at the D&B website and get a free D-U-N-S number. A D-U-N-S number is how D&B gets a small business into their system, to produce a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s sites for the business. You can do this at If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.

By doing this, Experian and Equifax will have something to report on.

Vendor Credit

First, you must build trade lines that report. This is also called vendor credit. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can begin to get more credit.

These varieties of accounts tend to be for the things bought all the time, like marketing materials, outdoor work wear, and office furniture.

But first of all, what is trade credit? These trade lines are credit issuers who will give you preliminary credit when you have none now. Terms are oftentimes Net 30, instead of revolving.

So, if you get approval for $1,000 in vendor credit and use all of it, you must pay that money back in a set term, such as within 30 days on a Net 30 account.


Net 30 accounts must be paid in full within 30 days. 60 accounts must be paid fully within 60 days. In comparison with revolving accounts, you have a set time when you must pay back what you borrowed or the credit you made use of.

To launch your business credit profile properly, you ought to get approval for vendor accounts that report to the business credit reporting agencies. When that’s done, you can then make use of the credit.

Then repay what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Vendor Credit – It Helpssmall business credit building Credit Suite - Small Business Credit Building

Not every vendor can help in the same way true starter credit can. These are vendors that will grant an approval with minimal effort. You also need them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

You want 3 of these to move onto the next step. Here are some stellar choices from us:

Small Business Credit Building: Monitor Your Business Credit

Know what is happening with your credit. Make certain it is being reported and attend to any inaccuracies as soon as possible. Get in the habit of taking a look at credit reports. Dig into the specifics, not just the scores.

We can help you monitor business credit at Experian, Equifax, and D&B for 90% less.

Update Your Data

Update the details if there are mistakes or the relevant information is incomplete.

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Small Business Credit Building: Fix Your Business Credit

So, what’s all this monitoring for? It’s to dispute any mistakes in your records. Mistakes in your credit report(s) can be fixed. Disputing credit report mistakes usually means you specifically detail any charges you dispute.

A Word about Small Business Credit Building

Always use credit smartly! Don’t borrow beyond what you can pay off. Track balances and deadlines for repayments. Paying off promptly and completely will do more to increase business credit scores than virtually anything else.

Growing small business credit pays off. Excellent business credit scores help a business get loans. Your loan provider knows the business can pay its financial obligations. They recognize the company is bona fide.

The business’s EIN attaches to high scores and loan providers won’t feel the need to call for a personal guarantee.

Small Business Credit Building: Takeaways

Business credit is an asset which can help your small business for many years to come. Learn more here and get started toward growing company credit.

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