How to Build Business Credit and Get Approved for Funding
- rumbichikadaya
- May 20
- 2 min read
If you're running or planning to grow a business, strong business credit isn't just “nice to have”; it's essential. It helps you secure funding, negotiate better terms with vendors, and separate your personal finances from your business.
1. Separate Your Business from Your Personal Finances
The first step to building business credit is making your business its own entity.
Register your business (LLC, corporation, etc.)
Get an Employer Identification Number (EIN) from the IRS
Open a business bank account
Apply for a business phone number and address (even if it’s a virtual one)
These steps establish your business as a real, credible operation, and they are essential for creating a business credit file.
2. Get Listed with Business Credit Bureaus
There are three major business credit reporting agencies: Dun & Bradstreet, Experian Business, and Equifax Business.
Apply for a D-U-N-S Number from Dun & Bradstreet (free and required for many funding opportunities)
Ensure your business info is consistent across all platforms (including your website, bank, and government records)
3. Start Building Credit with Vendors and Suppliers
Work with vendors who offer Net-30 or Net-60 payment terms and report to the credit bureaus.
Buy small business supplies or services and pay on time
Ask your vendors to report your payment history to credit bureaus
Good examples: Uline, Grainger, Quill, Summa Office Supplies
Timely payments help establish a solid credit history, which will later support your loan or credit card applications.
4. Open a Business Credit Card
Apply for a business credit card, even if it has a low limit at first.
Use it for regular business expenses
Keep your credit utilization low (ideally under 30%)
Pay off the balance in full each month, if possible, to avoid interest
This helps build a credit history and shows lenders that you can manage debt responsibly.
5. Monitor Your Business Credit Reports
Just like with personal credit, you should monitor your business credit regularly.
Check your reports from Dun & Bradstreet, Experian Business, and Equifax Business
Dispute any inaccuracies or outdated information
Track your credit score over time
Keeping your reports clean and up-to-date puts you in a stronger position for funding approvals.
6. Prepare for Funding Applications
Ensure your business is financially sound before applying for funding, such as a loan, line of credit, or grant.
Have updated financial statements and tax returns ready
Know your credit score and what lenders are looking for (e.g. cash flow, time in business, industry risk)
Build a strong business plan that shows how you’ll use the funding
Different lenders have different requirements, but good business credit increases your chances of approval and may get you better terms.
7. Consider Alternative Financing Options
If traditional loans are hard to get, there are other ways to access funding:
Online lenders and fintech platforms (e.g., Fundbox, Bluevine)
Invoice factoring or merchant cash advances
Grants—especially for minority-owned, women-owned, or new businesses
Crowdfunding or peer-to-peer lending
While building your credit, these can serve as temporary financing tools.
Building business credit takes time, consistency, and financial discipline, but it’s worth the effort. Not only does it help you access capital, but it also improves your credibility, increases your business’s value, and helps protect your finances.
