To build business credit, form a legal entity such as an LLC, get an EIN and a DUNS number, open vendor accounts that report your payments to the business credit bureaus, pay them on time or early, and then move up to larger accounts as your file fills in. Nothing happens automatically. Business credit has to be built deliberately and in order.
This page is the map. Each step links to a full guide.
What business credit is
Business credit is a record of how your business pays its bills. It is tied to your EIN, not your Social Security number, and it is kept by three bureaus that are separate from the consumer side of the same companies: Dun & Bradstreet, Experian Business, and Equifax Business. Each keeps its own file on your business and uses its own scoring models.
It is not an upgrade to your personal credit. The two systems run side by side, and early on most lenders still look at both. See business credit vs personal credit for the full comparison.
The sequence
- Form a legal entity. An LLC or corporation separates the business from you personally and gives the bureaus something to build a file around. A sole proprietor can get an EIN, but the owner and the business remain legally the same. See LLC setup for business credit.
- Get your EIN from the IRS. It is free and takes about ten minutes once your entity exists. See how to get an EIN online for free.
- Open a business bank account in the company's legal name, and keep business money out of your personal accounts.
- Register for a free DUNS number at Dun & Bradstreet, using the exact legal name and address from your state filing.
- Make your name, address, and phone number identical everywhere. Lenders and bureaus match records by these three fields.
- Open three to five Tier 1 net 30 accounts with vendors that report to the bureaus. See net 30 accounts and net 30 vendors that report.
- Pay early, or at least on time. Payment timing is what the PAYDEX score measures. See PAYDEX vs Intelliscore vs FICO SBSS.
- Confirm each account is actually reporting by checking your files. See how to check your business credit score for free.
- Move up in order: Tier 2 accounts, then business credit cards, then lines of credit. See business credit tiers explained.
What lenders check
Before a person reads your application, an automated review usually checks six areas: whether the entity is registered, whether your business identity is consistent across records, whether you have files at the bureaus, whether you have trade accounts with payment history, how your bank account behaves, and whether the business exists online. The fundable in 90 days guide covers all six.
How long it takes
These are typical ranges, not promises. Vendors report on their own schedules, and every business is different.
| Stage | Typical timing |
|---|---|
| Foundation (entity, EIN, bank account, DUNS) | About two to four weeks |
| First PAYDEX score | Often 60 to 90 days after the first invoices are paid |
| Tier 2 accounts | Roughly months 3 to 6 |
| Business credit cards | Roughly months 6 to 12 |
| Lines of credit and larger loans | Often after the first year |
Time in business and revenue requirements are set by calendar and by lender, so effort alone cannot shorten them. See how long it takes to build business credit.
Mistakes that cost the most time
- Assuming it builds itself. Personal credit builds in the background. Business credit stays empty until you open accounts with vendors that report.
- Opening accounts that do not report. If a vendor does not send your payments to a bureau, paying on time builds nothing.
- Skipping bureau files. A DUNS number only gets you into Dun & Bradstreet. Experian Business and Equifax Business build files when creditors report to them.
- Applying too early. Each application can mean a hard inquiry, and a thin file leads to denials. See why applications get denied.
- Paying for shortcuts. Aged shelf companies, rented tradelines, and "guaranteed funding" programs sell time that cannot be bought. See shelf corporations and business credit.