How to Build Business Credit From Scratch

Business credit is reported by Dun & Bradstreet, Experian Business, and Equifax Business — completely separate from your personal FICO score. A strong business credit profile lets your company qualify for financing without a personal guarantee.

Step one: form an LLC or corporation, get an EIN, and open a dedicated business bank account. Lenders will not extend business credit to a sole proprietor with no separation from personal finances.

Step two: get a D-U-N-S number from Dun & Bradstreet. It is free. Then open net-30 trade accounts with vendors that report payment history — Uline, Quill, Grainger, and Crown Office Supplies are common starting points.

Step three: pay every trade account 5 to 10 days early for the first 90 days. Early payment is what builds the strongest D&B Paydex score (anything over 80 is excellent).

Step four: graduate to store credit cards (Home Depot, Amazon Business, Lowe's), then to fleet cards, then to unsecured business credit cards from major issuers. Done correctly, a new business can build $50,000+ in business credit in 12 months.