Building Business Credit History

*All information on our website, blog, videos, emails, and social media accounts is for informational purposes only and should not be taken as financial, legal, or professional advice. *Some links on this page are affiliate links which means that, if you choose to make a purchase, we may earn a small commission at no extra cost to you.  See Affiliate Disclosure.* 

Building Your Business Credit History One Step at a Time

If you’re a small business owner, then you know how important it is to build up your business credit history. Without a strong business credit history, it can be hard to get approved for certain business financing methods, such as business term loans, lines of credit, and other methods of business financing. But what exactly is your business credit history and how do you go about building it up? The steps listed in this article aren’t the only steps you’ll need to build business credit, nor are they all the steps involved in building your business credit history, but there some tips that can get you on the right path to build business credit. Read on to find out. If you’d like to get some help with building business credit, there are some courses and services that can help yo build business credit. You can compare business credit services on our business credit services and business funding comparison page.

Basics of Building Your Business Credit History

If you’d like to learn the basics of building business credit and want to work towards building your business credit history, you should visit our business credit services comparison page and check out the DIY business credit course. Some basic steps you can take to build business credit may include, but are not limited to: Incorporating or filing for an LLC, opening a business banking account, getting a business address, phone number, email, and fax number, and opening 5+ vendor trade accounts through companies that report to the major business credit bureaus such as Dun and Bradstreet, Business Experian, Business Equifax, and Business FICO.

Opening a business credit card

Building good business credit history is an essential part of running a successful and sustainable business. Opening a business credit card, and using it responsibly with timely payments and spending limits set in advance, is an excellent way to start building positive credit. Not only can it be used as a backup source of financing if cash flow is low, but many businesses find that access to corporate cards makes purchasing process much easier and more efficient. Building a solid credit history has the added benefit of offering your business more opportunities down the road when you need lines of credit or loans for starting or expanding operations. *You must, however, find a business credit card that specifically reports to the BUSINESS credit bureaus and the business credit card must be in the name of the business and using the businesses credit. Most business credit cards are just under the owners name and personal credit and do NOT report to the business credit bureaus. You need to find the business credit cards that are designed to build business credit.*

A business credit card ithat reports to the business credit bureaus could be a great way to get started building your company’s credit history. By using it for some of your business expenses and paying off the balance in full and on time each month, you can begin to establish a good credit score. Keep track of your spending and monitor your business credit score regularly so that you can identify any problems early on and resolve them quickly. Once you have built up a good history, you can apply for loans and other lines of credit from financial institutions.

Apply for business financing

Once you have built up a good history, you may consider applying for loans and other lines of credit from financial institutions Building a good business credit history is paramount to businesses seeking access to loans and other lines of credit. Building a solid history requires an organized strategy including setting up accounts and paying them on time, continuously evaluating your credit score, and adhering to all other requirements from lenders. Creating a responsible and reliable pattern of payment shows potential future lenders that your business is trustworthy and capable of repaying the funds it borrows, making it easier for you to receive additional funds when needed. Building up a good history increases businesses’ borrowing power on future projects or investments, allowing them to expand their profitability.

Compare listings