Top 5 Tips for Building Business Credit This Year
Top 5 Tips for Building Business Credit This Year
Running a small business is a wild ride. You're juggling everything from keeping customers happy to finding enough hours in the day. But there’s one thing that could make your life a whole lot easier: building solid business credit. It's not sexy, but it’s a game-changer. So, let’s dive into how you can grow your business credit without wanting to throw your computer out the window.
1. Separate Personal and Business Finances – Stop Co-Mingling!
First things first: get yourself a dedicated business bank account and credit card. Mixing personal and business finances is a recipe for disaster. Not only does it confuse your bookkeeping, but it also makes you look unprofessional to lenders. Plus, building business credit is impossible if your transactions are tied to your personal accounts.
Pro Tip: Pick a credit card with rewards you’ll actually use, like cash back on office supplies or travel points for those “totally business-related” trips to Cabo.
2. Make Friends with the EIN – Your Business's Social Security Number
An Employer Identification Number (EIN) is like a Social Security number for your business. You’ll need one to open a business bank account, apply for loans, and build your credit profile. If you’re still using your personal SSN for everything, it’s time to level up.
Getting an EIN is free and takes about 10 minutes on the IRS website.
3. Start Small: Vendor Credit Is Your Gateway Drug
Rome wasn’t built in a day, and neither is a killer business credit score. Begin with vendors who report to business credit bureaus. Think companies like Staples, Uline, or Office Depot.
Order supplies on net-30 terms, pay on time (or early), and watch your credit profile grow.
4. Pay Your Bills on Time – Seriously, All of Them
Want lenders to trust you? Show them you can handle your bills. On-time payments are the backbone of a strong business credit score. Set up auto-pay for recurring expenses so you don’t accidentally forget.
Pro Tip: Paying early can boost your score even more. Plus, it gives you bragging rights for being ahead of the curve.
5. Monitor Your Business Credit – Be Nosy
You wouldn’t ignore your personal credit score, so don’t leave your business credit hanging. Check your profile regularly through agencies like Dun & Bradstreet, Experian, and Equifax.
Mistakes happen. If you spot an error, dispute it faster than you’d swat away an annoying sales rep at a conference.
Why Business Credit Matters
Strong business credit opens doors. It means better loan terms, lower interest rates, and the ability to scale without draining your personal savings. It’s not just about borrowing money; it’s about building trust with partners, vendors, and landlords.
Need a clear roadmap for building business credit? Our FREE (yes, free!) Business Credit Builder Course has you covered. From actionable strategies to insider tips, this course simplifies the process so you can focus on what really matters—growing your business.
Whether you’re starting from scratch or fine-tuning your credit game, this is your no-nonsense guide to getting it right.
