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How Long Does it Take to Build Business Credit? Fantastic Question!

June 14, 2018
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You Asked: How Long Does it Take to Build Business Credit?

Your question was: how long does it take to build business credit?

How long does it really take to build business credit? Do you know how to get business credit fast? Building company credit means that your business becomes fundable.

You can get new equipment, bid on real estate, and cover the company payroll, even when times are a bit lean. This is especially helpful in seasonal business enterprises, where you can go for calendar months with simply low sales.

As a result of this, you need to work on growing your corporate credit. Improve and maintain your scores and you will have these chances.

Do not, and either you do not get these chances, or they will cost you a lot more. And no small business owner wants that. You have to know what affects your small business credit before you can build business credit.

Your Questions on How Long Does it Take to Build Business Credit

We heard you!

You asked how to find out my business credit score. And you asked how can I build my business credit? How do I build my business credit? And what is my business credit score? Plus you wanted to know: what is a business credit score? You needed to know how to build credit for a small business. And you needed to know how long does it take to build good credit.

So this is how to build small business credit.

Credit History Length Matters

So, how does business credit work? One factor is history, a part of how long does it take to build credit score.

This is how long your company has been working with company credit. Newer businesses will have very short credit histories. While there is not too much you can specifically do about that, do not panic.

Credit reporting bureaus will also assess your personal credit score and your own record of payments. If your personal credit is excellent, and in particular if you have a reasonably extensive credit history, then personal credit can come to the rescue of business.

Normally the opposite is also true. If your individual credit history is bad, then it will impact your company credit scores until your company and individual credit can be separated.

how does business credit workYour Payment History is Important

Late monthly payments will influence your company credit score for a good seven years. If you pay your business (and personal) financial obligations off ASAP and make a very real difference in credit scores. Make sure to pay on time and you will reap the rewards of punctuality. Develop an excellent business credit history. It’s a very big thing to do when you want to build business credit fast.

Personal Credit Can Affect Corporate Credit

Are you having a bad business year? Then it could wind up on your individual credit score. And in the event that your firm has not been in existence for too long, it will directly have a bearing on your company credit.

Nonetheless, you can separate the two by taking measures to unlink them.

As an example, if you get credit cards only for your company, or you open up business checking accounts and other bank accounts (or even get a business loan), then business credit rating agencies will start to treat your personal and corporate credit independently.

Also, make sure to incorporate, or at least file a DBA. You can also take care of your company’s monthly bills with your small business credit card or checking account. And make sure it is the small business’s full name on the bill and not your own. So, does corporate credit card affect credit? Not if you separate the two.

The Credit Reporting Bureaus Can Get it Wrong

Just the same as each organization out there, credit reporting agencies like Equifax and Experian are only as good as their records. If your company’s name is like another’s, or your name is a lot like another company owner’s, there can potentially be some errors.

So monitor those reports, and your business report at Dun & Bradstreet, PAYDEX.

Stay on top of these reports and dispute charges with documentation and crystal clear communications. Do not just let them stay incorrect! You can fix this!

And while you’re at, it you should also be monitoring the credit reporting bureau which only handles consumer credit, TransUnion. If you do not know how to pull a credit report, do not stress. It is simple.

Discover our Get Business Credit guide, with everything you need to know about building credit for your business.

How to Build Business Credit for LLC

What does it take?

Due to the fact that company credit is distinct from individual, it helps to protect a business owner’s personal assets, in the event of a lawsuit or business bankruptcy. Also, with two separate credit scores, an entrepreneur can get two separate cards from the same vendor. This effectively doubles buying power. You can even get business credit cards bad personal credit.

Another benefit is that even startup companies can do this. This is even how to build business credit for an LLC.

Visiting a bank for a business loan can be a formula for disappointment. But building corporate credit, when done properly, is a plan for success.

Personal credit scores rely on payments but also additional factors like credit use percentages. But for small business credit, the scores actually just depend on if a business pays its debts promptly.

The Process

Establishing corporate credit is a process, and it does not occur without effort. A corporation must actively work to establish company credit. However, it can be accomplished easily and quickly, and it is much more efficient than building personal credit scores. Vendors are a big part of this process. This is how to get business credit fast.

Doing the steps out of order will cause repetitive rejections. No one can start at the top with company credit. For instance, you can’t start with store or cash credit from your bank. If you do you’ll get a denial 100% of the time.

So, how long does it take to build a credit score? If you follow our process, it’s surprisingly fast. You can get a small business credit score in less than four months. This is how to build credit for a new small business.

Business Fundability™

A business needs to be Fundable to creditors and merchants. That’s why, a corporation will need a professional-looking website and email address, with website hosting from a merchant like GoDaddy. Also company telephone numbers ought to have a listing on ListYourself.net.

Likewise the company telephone number should be toll-free (800 exchange or similar).

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 operating. These licenses all have to be in the precise, correct name of the small business, with the same company address and phone numbers. Keep in mind that this means not just state licenses, but possibly also city licenses.

Working with the Internal Revenue Service

Visit the IRS web site and obtain an EIN for the small business – they’re free. Select a business entity like corporation, LLC, etc. A small business can get started as a sole proprietor but should switch to a kind of corporation or partnership to decrease risk and optimize tax benefits.

A business entity will matter when it comes to taxes and liability in the event of a litigation. A sole proprietorship means the owner is it when it comes to liability and taxes. No one else is responsible.

If you operate a small business as a sole proprietor at least file for a DBA (‘doing business as’) status. If you do not, then your personal name is the same as the corporate name. Hence, you can find yourself being personally accountable for all business financial obligations.

Discover our Get Business Credit guide, with everything you need to know about building credit for your business.

Kicking Off the Business Credit Reporting 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 company 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 small business. You can do this at https://www.creditsuite.com/reports/. This is the answer to the question: how to check my business credit score for free? 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 so, Experian and Equifax will have activity to report on. It’s a great way how to find your business credit score.

So if you’re asking, does my business have a credit score? The answer is probably yes. And the answer to what is my business credit score – that’s probably not so hot to start. But that’s okay. Here’s how to establish small business credit.

Vendor Credit

First you need to build trade lines that report. This is also referred to as 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 getting more credit.

These varieties of accounts have the tendency to be for the things bought all the time, like shipping boxes, ink and toner, and office furniture.

But to start with, what is trade credit? These trade lines are creditors who will give you preliminary credit when you have none now. Terms are ordinarily Net 30, instead of revolving.

Therefore, if you get approval for $1,000 in vendor credit and use all of it, you need to 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 in full within 60 days. Compared to with revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you used.

To launch your business credit profile the proper way, you need to get approval for vendor accounts that report to the business credit reporting bureaus. Once that’s done, you can then use the credit.

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

Vendor Credit – It Helps

Not every vendor can help like true starter credit can. These are vendors that will grant an approval with a minimum of effort. You also need them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian. Make sure that the net 30 accounts you apply for accept new businesses.

This is how to get credit for a new business.

Discover our Get Business Credit guide, with everything you need to know about building credit for your business.

Monitor Your Business Credit Score

You may be wondering: how can I check my business credit score? You need to get business credit score.

Know what is happening with your credit. Make sure it is being reported and attend to any errors as soon as possible. Get in the habit of checking credit reports. Dig into the specifics, not just the scores. What is a good business credit score? It’s an LLC credit score, or a corporate credit score, where it shows you’re paying on time.

We can help you monitor business credit at Experian, Equifax, and D&B for 90% less. Update the relevant information if there are errors or the data is incomplete. This is the answer to the question: how do I check my business credit?

Contesting Inaccuracies

So, what’s all this monitoring for? It’s to challenge any errors in your records. Mistakes in your credit report(s) can be taken care of. But the CRAs normally want you to dispute in a particular way.

Disputing credit report inaccuracies usually means you mail a paper letter with copies of any proofs of payment with it. These are documents like receipts and cancelled checks. Never send the originals. Always send copies and keep the original copies.

Disputing credit report inaccuracies also means you specifically detail any charges you dispute. Make your dispute letter as crystal clear as possible. Be specific about the problems with your report. Use certified mail so that you will have proof that you sent in your dispute.

A Word about Building Business Credit

Always use credit responsibly! Don’t borrow beyond what you can pay back. Keep an eye on balances and deadlines for payments. Paying off on schedule and in full will do more to boost business credit scores than nearly anything else.

Establishing business credit pays. Excellent business credit scores help a business get loans. Your loan provider knows the small business can pay its debts. They know the corporation is authentic. The company’s EIN links to high scores, and creditors won’t feel the need to ask for a personal guarantee. How long does it take to get a business loan? Not long if you have worked to build credit for small business.

Business credit is an asset which can help your business for years to come.

How Long Does it Take to Establish Business Credit?

Once you understand what affects your company credit score, you will know. And you’ll be able to answer anyone who asks: how long does it takes to build business credit. This is how to establish business credit fast.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN. This is what it will take to build business credit.

About the author 

Janet Gershen-Siegel

Janet Gershen-Siegel is the Head Finance Writer and Content Manager at Credit Suite. She has been admitted to practice law for over 30 years, with a focus on litigation and product liability, and is a published author, with writing credits at Entrepreneur, FedSmith.com and BusinessingMag.com.

She has a BA in Philosophy from Boston University, a JD from the Delaware Law School of Widener University, and a MS in Interactive Media (Social Media) from Quinnipiac University.

She regularly writes for Credit Suite, which helps businesses improve Fundability™, build credit, and get approved for loans and credit lines.

Her specialties: business credit, business credit cards, business funding, crowdfunding, and law

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    1. It can take a few months or so. Generally, with the vendors we suggest you start with, you need to buy goods and pay on time (or even better, early) a few times before being approved for a net 30 account, which will then be reported to the business CRAs — usually D&B, maybe Experian. Equifax is rare.

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