How to build credit for your business in the United States

Every entrepreneur knows the importance of establishing a good credit history for your business. Without a separate business credit history from your staff, you will have a harder time getting loans or new accounts approved. On the contrary, a solid credit commercial not only ensures quick approval of loans and lines of credit, but also encourages potential lenders to make good deals.

Why should you start building a credit history for your business now?

Establishing your credit history from the moment you start your business is definitely a bonus. The longer you have your credit history, the more secure banks and credit institutions will be of their ability to meet their payment obligations, then you will wonder why is this important?

Sooner or later, as your business grows and expands, you will need to apply for new loans and other financing options for your business. As we have said, the better the credit history of your business, the better your chances of being offered the best possible loan terms.

How to build credit for your business

Also, if you have a business with a separate line of credit from your personal credit this will protect your credit history from risk. If you do not meet the payment term on your business cards, only your business credit will be affected and your personal credit history will not have to suffer.

We will discuss the requirements and information you will need to prepare before you can start building credit for your business.

Legal entity: First of all, you need to clearly define the legal entity of your business. In order to benefit from a line of credit for your company, your business must be a corporation or LLC (Limited Liability Corporation).

Physical address: Legitimate businesses must have a physical address and a phone number. These two important contact details confirm that your company really exists and is not just a name.

The investors. Who is financing your business? Whether you have sought financial assistance or assistance from a loan company or a private investor, you must provide this information when applying for credit for your business.

Licenses. You must be able to present proof that your business is already registered and has all the business permits and licenses that your city or state requires of you.

Personal credit. Since you do not have a business credit history yet, your personal credit would be used when applying for your first loan, line of credit or credit card for your business or company. Obviously, an excellent rating or score on your personal credit increases your chances of getting approved and getting the best deals. However, it is a good idea to request your first loans with entities that offer facilities for new business owners without requesting a guarantor or verification of your personal credit, although your line of credit at first will be for a low amount, this will help you build the credit history of your business and in this way it will not affect your personal credit score every time a financial institution requests your record.

Credit bureau. Dun & Bradstreet, Experian Business, Equifax, Business Credit USA They are the best known credit reporting agencies in the US. You can apply for or register your business with these credit bureaus by filling out a form and registering your business. The process can take up to 30 days to complete, but once completed, you can be sure that all of your transactions with your lenders and business partners will be reflected on your business credit report.

Register your business with Dun & Bradstreet ( by requesting a Dun & Bradstreet DUNS Number ®. A DUNS number ® is to a business what a Social Security number is to an individual. The Duns ® Number is not a Federal EIN, it is the number used by creditors to obtain a copy of your business credit report.

Punctuation Paydex. Your score Paydex is equivalent to your FICO Score. The result Paydex It is used to calculate the credit history of your business or company. To build a scorePaydex high will have to prove your worth as a borrower. After registering your business with the credit bureaus, get a loan or a credit card and make your payments on time, that’s the best way to build good credit for your business. Business credit score ranges from 0 to 100, a score of 75 or higher is considered a good score.

Leave a Comment