Business credit is a financial track record tied to your company, separate from your personal credit. Strong business credit lets you qualify for business loans, lines of credit, and vendor terms at better rates — without putting your personal finances on the line.
Why Business Credit Matters
- Access to larger credit lines without a personal guarantee
- Better interest rates as your score improves
- Vendor net-30 and net-60 terms for cash flow management
- Protects your personal credit from business obligations
- Required by many commercial landlords and large contract partners
Business Credit Scores
Business credit is reported to Dun & Bradstreet (D&B), Experian Business, and Equifax Business — not to the personal credit bureaus. The most widely used score is the D&B PAYDEX score (0 to 100), which measures how promptly you pay business bills. A PAYDEX of 80+ is considered good.
Step 1: Legally Separate Your Business
- Register as an LLC, S-Corp, C-Corp, or other legal entity
- Get a federal Employer Identification Number (EIN) from the IRS — free at IRS.gov
- Open a dedicated business checking account
- Get a business phone number listed under your business name
Step 2: Register with Dun and Bradstreet
Get a free D-U-N-S number at the D&B website. Without one, your business credit file may not exist or be visible to creditors. Allow up to 30 days to receive your number.
Step 3: Open Trade Lines With Vendors Who Report
Vendors that offer net-30 terms and report to business credit bureaus are the fastest path to building your score. Starter vendors include:
- Uline (shipping supplies)
- Quill (office supplies)
- Grainger (industrial supplies)
- Crown Office Supplies
Make purchases, pay invoices early, and let payment history build your PAYDEX score. You need 3 to 5 trade lines reporting before D&B calculates your score.
Step 4: Get a Business Credit Card
Business credit cards that report to business bureaus help build your profile. Start with what you can qualify for:
- Secured business credit cards (easiest to get with no history)
- Store business cards (Office Depot, Home Depot)
- Major bank business cards (Chase, Capital One, Amex) once you have trade line history
Step 5: Pay Early, Every Time
With the PAYDEX score, paying before the due date scores better than paying on time — unlike personal credit, where timing does not matter. Set up autopay for all business accounts.
Step 6: Monitor Your Business Credit
You are not entitled to free business credit reports by law. Options:
- D&B: dnb.com (paid plans)
- Nav.com: Free business credit monitoring with subscription for full access
- Experian Business: businesscreditfacts.com
Check regularly and dispute any errors — they are common.
How Long Does It Take?
You can have a PAYDEX score within 3 to 6 months of establishing trade lines. A strong profile that supports significant loan applications typically takes 1 to 2 years.
Bottom Line
Business credit is a durable asset that grows in value with your company. The foundation — legal entity, EIN, business bank account — takes a day to set up. Three to five net-30 vendor accounts and a business credit card will put you on track for a strong profile within six months.