How to build business credit

Check your business (and personal) credit

Don’t know if your business has credit? No worries: There are several ways to check your business’s credit reports.Unlike with personal credit reports, there isn’t a legal requirement for the bureaus to give you free access to your business credit reports. All three of the major business credit bureaus — Dun & Bradstreet, Equifax and Experian

Establish your business credit

If you didn’t find anything when you went to check your business’s credit reports, it’s possible that your business hasn’t established any credit yet.This might happen if you use a personal credit card for your business’s expenses, as your payments will only wind up on your personal credit reports.

Apply for a business credit card

To build your business credit profile, you’ll need accounts and vendors that report your payments to the credit bureaus. A business credit card can be a good start.Business credit cards may also offer benefits and rewards programs that are more helpful to business owners than the features or rewards on a personal credit card.

Work with vendors that report payments

In addition to opening a business credit card, you can build your business’s credit by opening accounts with vendors that report payments to the business credit bureaus.

Pay those vendors early

One widely-used business credit score, the Dun & Bradstreet PAYDEX® score, ranges from 1 to 100, with 100 being the best score. The score is based on your payment history with vendors.

 Use your business credit to manage your cash flow

One potential benefit of building your business’s credit is you may become eligible for lower rates and better terms with vendors. Both of these can help you manage your cash flow — the lifeblood of many businesses.

 Monitor your business credit reports

Errors and fraudulent activity can impact your business’s credit and make it difficult – and more expensive – to borrow money.