top of page


One of the key's to financial freedom involves having access to capital so that when great opportunities presents itself you can take FULL advantage! The average American will never save up $100k liquid because most are living paycheck to paycheck and the ones that do save will always have life get in the way of their saving ability! However it is very possible to build your credit up so that you have the ability to access $100k in as little as 6 months depending on your situation.


Establishing business credit isn’t complicated, but it does take some planning and forethought. The sooner you start, the sooner your credit will start to build.

This article will walk you through steps you can take to establish your business credit so that if and when you’re ready for financing, your business is well-positioned to not only get approved for a business loan, but also get great terms on it.

What is Business Credit?

Business credit is the ability of a business to qualify for financing. Businesses have credit reports and scores just like people do. Business credit bureaus Dun & Bradstreet, Experian, and Equifax all keep a record of debt payments and other credit information on businesses.

Your business credit report may be used by lenders, creditors, suppliers, insurance companies and other organizations evaluating a credit or insurance application or business deal. 

These tips on how to establish business credit and then build a business credit profile can help you bring your plans and aspirations to fruition.

Let’s look at each of these steps in depth.

How do I build business credit?

1. Put Your Business on the Map.

Just because you’re open (or about to open) for business, doesn’t necessarily mean you’ve put yourself on the map. You can’t effectively establish credit until you’ve established your business! Get a business phone number and have it listed in the directory. Every credible business should have one. You’ll also want to open a business bank account in your official (legal) business name, and regularly use it to pay your bills. You need to open a business credit file in order to establish business credit.

2. Establish and Maintain Good Credit Relationships with Suppliers and Vendors.

In the world of business, a solid line of credit with industry-relevant vendors or suppliers is like gold. The better your relationship, the more likely you are to avoid paying up front for items or services. If you can secure a line of credit or payment terms such as net-60 or net-90 with just a few (3-5) vendors or suppliers that report those payments to business credit reporting agencies, you can establish a positive business credit history.

Your vendors aren’t required to report to credit bureaus, though, so you may need to be proactive and open accounts with those that do. Here are three vendors that report payments to business credit bureaus and reporting agencies, and that are flexible when extending credit.

3. Obtain an Employer Identification Number.

A Federal Tax Identification Number, or EIN, is like a Social Security number for your business. You’ll need one of these to change your business entity to a corporation, and you may need one to open a bank account under your business’s name or secure business contracts.

4. Pay on Time All the Time.

This is probably the number one rule in any credit situation. Paying your bills on time shows that you are reliable and can effectively manage (and pay off) your debt. A late payment history, especially severely delinquent payments, will bring down your business credit rating and negatively impact your business credit profile.

5. Open a Business Credit Card.

Opening a business credit card with a creditor that reports to the major credit reporting agencies is a great way to establish business credit. You definitely should have at least one open business card, but more than one can also help. However, be sure to use caution and avoid overextending your business finances. Just because the credit is available through your business credit card doesn’t mean you need to (or should) utilize all of it. (Find business credit cards that match your credit file using a free Nav account.)

6. Get Incorporated.

If you haven’t already, seriously consider getting incorporated or becoming an LLC. By adding Inc. or LLC to your business name, you’ll be legally separating your business and personal credit profile and assets. If you choose not to do this and continue to operate as a sole proprietor, your business and personal credit history (among other things) will be legally attached, and your personal