So you’ve got a business, or at least a really solid idea for one. That’s awesome. But then comes the money part. You need to buy stuff, maybe rent a space, get some software. And you’ve been putting it all on your personal credit card. It feels a bit risky, doesn’t it? Mixing your new laptop for the business with last night’s pizza delivery on the same statement. This is where business credit comes in. It’s the thing that lets you get loans and credit lines in your business’s name, not your own. It’s a safety net. It helps you get bigger funding down the road without having to put your own personal house on the line, which is typically a good thing. For 2025, getting this separation sorted out is more important than ever. Lenders are looking closely, and having a clean, independent business credit profile makes you look like you know what you’re doing.

First Things First: Setting Up Your Business the Right Way

Before you even think about applying for a business loan you have to get your house in order. You can’t just build credit for an idea. You need to make your business a real thing in the eyes of the government and the banks. It’s a foundational step that many people surprisingly skip.

Your business and you need to be separate people legally speaking. This means forming an LLC or a corporation. A sole proprietorship can work but it mixes your personal and business stuff together which is what we are trying to avoid. So it is generally recommended that you form a separate entity. This shows you’re serious.

Get Your EIN (It’s Like a Social Security Number for Your Business)

Once your business is an official entity, you need an Employer Identification Number. This is a federal tax ID number. You get it from the IRS, and it’s totally free. Don’t let anyone charge you for it. This number is what identifies your business to the government and, later on, to credit bureaus. It’s a must-have.

Open a Business Bank Account

With your formation documents and your EIN in hand, go to a bank. Open a dedicated business checking account. All your business income should go into this account, and all business expenses should come out of it. This creates a clean financial record. It also starts a relationship with a bank which can be helpful later when you need a loan. Don’t use your personal account it just makes everything messy for taxes and for building credit.

Getting on the Radar of Credit Bureaus

So you have your EIN. Great. Now, you need a credit file. Unlike personal credit, where you automatically get a file when you turn 18 or get your first card, a business credit file has to be created. It doesn’t just appear out of nowhere. You have to take steps to make it happen.

There are a few big players in the business credit world. The main one you need to know is Dun & Bradstreet (D&B). Think of them as the big kahuna of business credit reporting. They issue something called a DUNS Number.

Dun & Bradstreet (D&B): They provide the DUNS Number and create a PAYDEX score.
Experian Business: They have their own scoring system called Intelliscore Plus.
Equifax Business: They produce their own set of business credit reports and scores.

Getting a DUNS number is how they start a file on you, which lenders then look at. You get a DUNS number, for free by the way, and that’s your ticket in. It tells the world your business exists and is ready to be rated on its financial responsibility.

Actually Building Your Credit: The Action Steps

Okay, your business is set up properly and you exist in the credit reporting universe. Now for the part where you actually build the credit score. This is an active process. It requires you to get credit and then use it responsibly. It’s considered to be a key process for growth.

The goal is to get accounts that report your payment history to the business credit bureaus. Not all of them do, so you have to check. This is where you start small and work your way up.

Start with Vendor/Trade Credit (Net-30 Accounts)

This is the classic starting point. You find companies that will sell you supplies for your business and give you 30 days to pay the bill. It’s basically a “buy stuff now, pay us in 30 days” deal. These are called net-30 accounts. Some popular ones are Uline (for shipping supplies), Quill (for office supplies), and Grainger (for industrial gear).

The trick is to find ones that report to D&B or other bureaus. A quick search or a call to their sales department can usually confirm this. Make a few small purchases, and then, this is the most important part, pay the bill early. Not on time. Early. Paying 10 or 15 days before the due date makes your PAYDEX score go way up.

After you have a handful of these accounts reporting good payment history, your business credit file will start to look pretty decent.

Then you can move on to the next level. This might be a retail credit card, like one from a gas station or a big box store like Home Depot. These are sometimes easier to get than a major bank visa or Mastercard. Again, use it for small, necessary purchases and pay the bill off completely and early.

Finally, after a few months of this, you can try for a real business credit card from a bank. At this point, you’ll have a documented history of responsible payments, which makes you a much better candidate for approval.

What to Watch Out For and Common Mistakes

Building business credit is a pretty straightforward path, but there are definitely some potholes to avoid. Don’t trip up here. A lot of new business owners make some common errors that can set them back for months or even years.

One big mistake is applying for too much credit all at once. Every application can cause a small inquiry on your report. A bunch of them in a short period looks desperate. It’s a red flag to lenders. Go slow and steady. Get one account, use it well for a few months, then get another.

Another problem is not checking your business credit report. Just like your personal report, your business report can have errors. You need to get copies of your reports from D&B, Experian, and Equifax at least once a year. Check them for any mistakes and dispute them if you find anything wrong. If you don’t look, you’ll never know.

And of course, paying late is the number one killer of a business credit score. Even a single payment that is 31 days late can trash your score. Set up automatic payments. Put reminders in your calendar. Do whatever it takes to make sure every single bill is paid before its due date.

Answering Your Questions About Business Credit

How long does it take to get business credit?

It can be pretty quick if you’re focused. Once your business is set up, you can get a DUNS number in a few weeks. After opening a few net-30 accounts, it might take 60-90 days for that payment history to start showing up and building you a score. A solid score can typically be built in about 6 months to a year.

Can I get business credit with a new business?

Yes, absolutely. That’s the whole point of this guide. You start with vendor accounts (net-30) that don’t rely on your business history. They are designed for new businesses to establish a payment history from scratch.

What’s a good business credit score?

It varies by the bureau. For D&B’s PAYDEX score, the scale is 1-100. A score of 80 or above is considered really good and indicates you pay your bills on time or early. For Experian and Equifax, the scales are different, but generally, the higher the better.

Do I need an LLC to build business credit?

It is highly recommended. While a sole proprietor can sometimes get a DUNS number, separating the business into an LLC or corporation is the cleanest and safest way. It shows a clear line between you and the business, which is what business credit is all about.

Key Takeaways

Look, building business credit isn’t rocket science, but it does take some planning and discipline. It’s a process that you have to follow step-by-step.

Separate Yourself: Form an LLC or corporation to create a legal wall between your personal and business finances.
Get Your Numbers: Obtain a free EIN from the IRS and a free DUNS Number from Dun & Bradstreet.
Open the Right Accounts: Start with a business bank account, then move to net-30 vendor accounts that report to the credit bureaus.
Pay Early: This is the secret sauce. Paying your bills 10-20 days before they are due will supercharge your business credit score.
Monitor Everything: Regularly check your business credit reports for errors and to see your progress.

Getting your business credit in order for 2025 is one of the smartest moves you can make. It opens doors to funding, better terms with suppliers, and gives your company a professional footing that will help it grow for years to come.