A complete roadmap for new business owners who want to establish a solid credit foundation.

Step 1: Formalize Your Business Entity

Lenders and credit bureaus need to see that your business is a separate legal entity from you personally.

• Incorporate: Register as an LLC, S-Corp, or C-Corp. Avoid operating as a Sole Proprietorship if you want to shield your personal credit.
• Get an EIN: Apply for a free Employer Identification Number from the IRS. This acts as the “SSN” for your business.
• Open a Business Bank Account: All business expenses must flow through this account to prove financial stability.

Step 2: Establish a Professional Identity

Credit bureaus use “matching” algorithms. If your data is inconsistent, you may be denied credit. Ensure you have:

• A physical business address (not a P.O. Box).
• A dedicated business phone number listed in 411 directories.
• A professional website and email address (e.g., name@yourbusiness.com).

Step 3: Register with Credit Bureaus

The “Big Three” for business credit are Dun & Bradstreet (D&B), Experian Business, and Equifax Business.

• Get a D-U-N-S Number: This is a free, unique nine-digit identifier from Dun & Bradstreet. It is mandatory for most government contracts and many business loans.

Step 4: Open “Net-30” Vendor Accounts

This is the fastest way to start. Many “starter” vendors will give you credit even if you have no history.

• What is Net-30? It means you have 30 days to pay the bill after the invoice date.
• The Strategy: Buy office supplies or shipping materials from companies like Uline, Grainger, or Quill.
• Crucial: Ensure the vendor reports your payments to the credit bureaus.

Step 5: Apply for a “No-PG” or Secured Business Credit Card

If your personal credit is low, start with a Secured Business Credit Card, where you provide a deposit.

• If your personal credit is decent, look for a business card that reports only to business bureaus (like the Brex card or certain Amex business cards).
• Using a business card helps establish a “revolving” credit history, which is different from the “terms” history of vendor accounts.

Step 6: Pay Early (Not Just on Time)

In the world of business credit, “on time” is a C-grade.

• The Paydex Score: Dun & Bradstreet’s primary score ranges from 1 to 100. To get a perfect score of 80+, you must pay your invoices before the due date (e.g., paying a Net-30 bill on day 15).

Step 7: Monitor Your Reports Regularly

Business credit reports can often contain errors. Unlike personal credit, anyone can view your business credit report if they pay for it (including competitors or lenders).

• Check your reports quarterly.
• Dispute any inaccuracies or outdated information immediately to keep your score high.

Feature	Personal Credit	Business Credit
Identifier	Social Security Number (SSN)	Employer Identification No. (EIN)
Main Bureaus	Experian, Equifax, TransUnion	D&B, Experian, Equifax
Score Range	300 – 850	0 – 100 (typically)
Privacy	High (Consumer Protection)	Low (Public Records)