How to build business credit fast: 10 essential steps

Follow these steps to build credit fast

1. Form a legal business entity (LLC, S corp, or C corp).
2. Apply for an EIN from the IRS.
3. Set up a business address and phone number.
4. Open a business checking account.
5. Register your business with credit bureaus (D&B, Experian Business, Equifax Business).
6. Open trade lines with vendors who report to credit bureaus.
7. Apply for a secured business credit card.
8. Make on-time payments and avoid common pitfalls.
9. Monitor your business credit reports monthly.
10. Graduate to unsecured credit accounts as your business credit grows.

Summarize in ChatGPT

As a small business owner, you’ve got growth on your mind—securing funding, managing cash flow, expanding operations. And if you’re like many newer entrepreneurs, you may have leaned on personal savings or credit to get by in the short term. But before your business can really stand on its own two feet, you need to build business credit that isn’t tied to your personal finances.

Think of it like removing the training wheels—shifting financial responsibility from you to your business so it can carry its own weight and scale. The good news is that you can build solid business credit without putting your personal finances on the hook. We’ll walk you through exactly how to establish your business credit and provide best practices to avoid damaging your business credit.

What is business credit, and why does it matter?

Business credit is your company’s history of debt repayments, including business loans, credit cards, and lines of credit. Think of your business credit score as a report card for your business’s financial reputation, separate from your personal credit. Lenders, vendors, and other financial institutions prioritize business credit when assessing the risk of extending credit or services. A strong business credit profile makes it easier to secure loans and favorable terms—without having to lean on personal funds.

And for many new businesses, that separation can make all the difference. Our survey reveals that 54% of businesses in their first two years have used personal funds to cover expenses at least once, compared with just 38% of firms that have been around for over a decade.

Meanwhile, about one in four business owners report struggling to access capital—due to factors like low credit scores, high interest rates, or limited business history.
Building business credit early can reduce your reliance on personal savings and improve your odds of securing the funding you need to grow.

Bluevine Tip

Check your business credit reports from Dun & Bradstreet, Experian Business, and Equifax Business at least once a quarter, and consider setting up alerts for any changes. Immediately dispute any inaccuracies by providing clear documentation to the specific credit bureau.

Is business credit linked to personal credit?

Business credit and personal credit are typically separate, but they can be linked, especially for small business owners. When you apply for business credit as a small business owner, lenders often assess your personal credit history as an indicator of your creditworthiness, particularly if your business has a limited credit history.

How to build business credit without personal credit

Building business credit without leaning on your personal credit is doable if you take the right steps. We break down exactly how to establish and grow your business credit profile independently so you can access funding without tying it to your personal finances.

1. Apply for an EIN from the IRS

An Employer Identification Number (EIN) is like a Social Security number for your business. It’s how the IRS tracks your business for tax purposes, and it’s essential for opening a business bank account, applying for credit, and establishing your business’s financial identity. Think of it as the first step in showing your business is legit and creditworthy. You can apply for an EIN for free in just a few minutes on the IRS website—no paperwork or fees required.

2. Form a legal business entity

The first step to building business credit is forming your business as a legal entity. This means officially registering your business as an LLC, S-corp, or C-corp—structures that give your business a separate legal and financial identity. Without this, lenders and credit bureaus can’t distinguish between your business and personal finances, making it nearly impossible to build credit solely in your business’s name.

(You can also establish business credit as a sole proprietor by registering a DBA name, but your personal and business finances will be connected.)

Incorporating will give your business added legitimacy, protect your personal assets in the event of a lawsuit against your company, and allow you to open a business banking account.

3. Set up a business address and phone number

Having a dedicated business address and phone number adds legitimacy to your business—and lenders look for that. It shows you’re operating professionally and helps separate your business identity from your personal one.

To set up a business address, you can rent a physical office space, use a coworking space, or sign up for a virtual business address service. For your phone number, avoid using your personal cell as a business line. Be sure to list your business address and phone number consistently across all your business documents, registrations, and directories.

4. Open a business checking account

A business checking account keeps your business finances separate from your personal ones. It helps you create a clear financial record and manage your cash flow efficiently, both of which are crucial when building business credit. Lenders also look for this separation when evaluating your business’s financial stability.

Important factors to consider when choosing a business checking provider:

• Fee structure
• Balance requirements
• Interest
• Available financing options
• Digital user experience

5. Register your business with credit bureaus

To start building business credit, your company needs to be visible to the major credit bureaus. That means setting up business credit profiles with Dun & Bradstreet (D&B), Experian Business, and Equifax Business—these are the agencies lenders and vendors rely on to evaluate your business’s creditworthiness.

Start by applying for a free D-U-N-S Number from D&B, which is required to create your profile. For Experian and Equifax, check if your business already has a file and follow their steps to update or create one. Once you’re listed, make sure your information is accurate and consistent across all three.

6. Open tradelines with vendors

One of the easiest ways to start building business credit is to work with vendors that offer net terms—like net 30 or net 60—which give you 30 or 60 days, respectively, to pay your invoice. These agreements function like short-term credit accounts, and when vendors report your payments to commercial credit bureaus, it helps establish your business credit profile.

Start by purchasing from vendors that already report to these bureaus—such as office supply companies, wholesalers, or service providers. The key is to pay your invoices on time or early. Even small, consistent payments can go a long way in proving your business is creditworthy.

7. Apply for a secured business credit card

Secured business credit cards are a practical way to start building business credit when traditional cards aren’t an option. You’ll provide a deposit upfront, but the card still reports to business credit bureaus, helping you build your profile over time.

Look for cards that don’t require a personal guarantee so your personal credit stays separate. Use your business card for smaller purchases, and pay on time to establish a strong payment history.

Bluevine Tip

Instead of a business credit card, you might consider a business line of credit, which assesses your business’s financial health rather than your personal credit. That means you can access flexible funding and build credit history without tying it to your own credit profile.

8. Make on-time payments—and avoid common credit pitfalls

Your payment history plays a major role in building business credit. Just like with personal credit, consistently paying bills on time signals reliability to lenders and vendors.

Set up reminders or autopay where possible to avoid late payments. Even one missed due date can set back your progress, so staying ahead of deadlines helps build a strong, trustworthy credit profile.

In addition to doing all the positives to build your business credit, it’s critical to stay away from negative marks, such as:

• Late payments/delinquencies: Paying your credit card bill late can result in penalties, including late fees, an increase in APR, and more. The longer the delinquency goes, the more severe the penalties can become, until the debt is moved to collections or a lawsuit is filed.
• High credit utilization rate: Having a high credit utilization rate can lower your business credit score, even if you pay the balance off in full each month. Remember, if you expect your expenses to be high, consider raising your credit limit to minimize the impact of this negative mark.
• Bankruptcies: Bankruptcy is often a last-ditch response for a struggling business. While it can be a credible solution if you have no other options, bankruptcy will stay on your credit report—and have a significant impact—for up to ten years.
• Tax liens: If you do not file or pay your business taxes, you may be subject to a tax lien, where the government can seize your business assets to pay off your tax debt. While this will not directly affect your credit score, it will be noted on your credit report and could affect your ability to obtain additional credit in the future.
• Judgments: If you are engaged in a lawsuit, particularly one that requires debt collection, it will appear on your credit report. Like tax liens, it will not directly affect your score, but could hurt your chances of being approved for credit in the future.
• Too many hard inquiries: Hard inquiries include requests to open new lines of credit, mortgages, and loans. These can drop your credit score a minimal amount, but those amounts can accumulate—and they can be grounds for denying future credit.

9. Monitor your business credit reports monthly

Building credit is one thing—tracking it is another. Keep an eye on your business credit reports to make sure your information is accurate and up to date.

Errors or outdated data can hurt your credit profile without you even realizing it. Set a reminder to review your reports from major bureaus monthly, so you can catch mistakes early and track your credit-building progress over time. Here’s what to check for:

• Accurate business information: Verify your company name, business structure, address, and business/industry type.
• Business credit scores and ratings: Each credit bureau uses its own scoring system, but your scores should be similarly strong. Significant differences may indicate unreported payments, outdated information, or that an important tradeline isn’t reporting to every bureau.
• Payment history: Ensure that all tradelines are listed and reflect your timely payments.
• Credit utilization: Check that the balances and credit limits reported on your credit profile align with what you’re actually using. High credit utilization ratios can bring down your scores, even if you make timely payments.
• Public records: Keep an eye on any liens, judgments, or bankruptcies that might appear on your credit profile. Some of these records can linger, impacting your credit score even after they’re resolved.
• Business financials (if reported): Confirm that your revenue, net worth, and any asset information reported by the credit bureaus are up to date.

If you find an error on your credit profile, contact the reporting bureau immediately. Submit a dispute, and include documentation such as invoices, bank statements, or vendor agreements with correct information. Be sure to follow up until the error is corrected.

Bluevine Tip

Consider using a credit-tracking service to easily manage your business credit scores, but be sure not to follow your business credit too closely—check in every quarter or when you’re preparing to apply for a loan or negotiate a vendor agreement.

10. Graduate to unsecured credit accounts

As your business credit strengthens, consider transitioning to unsecured credit cards and higher-limit credit lines. Unlike secured credit cards, unsecured credit accounts don’t require a deposit up front.
These options offer more flexibility for managing cash flow and require a higher level of trust from lenders. Gradually increasing your credit limit or applying for unsecured credit helps you demonstrate reliability while further separating business and personal finances. With an unsecured business credit card, you could enjoy:

• Rewards: The best business credit cards offer rewards for qualifying purchases, such as cash back, redeemable points or travel miles, or rotating rewards categories.
• Easy, secure payments: You can add your business credit card to your mobile wallet for contactless payments in-store, or use your virtual card online for added security.
• Streamlined spending for your whole team: You can issue additional cards to your employees so they can securely make business purchases without having to share card numbers. This also helps your company save time on expense reporting and reimbursements.

As long as your lender or credit card provider reports your payment activity to one or more of the major business credit bureaus, you can easily build business credit over time.

Ways to use personal credit to build business credit

While the goal is to eventually separate your business and personal credit, there are strategic ways to use personal credit to jump-start your business’s credit journey. In the early stages, leveraging your personal credit responsibly can help you establish a solid foundation for your business’s credit profile.

Below are some effective strategies for using personal credit to build your business credit without putting your finances at risk.

Apply for a personal guarantee on business accounts

When applying for business credit (like a loan, line of credit, or credit card), indicate that you’re willing to provide a personal guarantee. The application will typically ask for personal information, including your personal credit score, income, and assets.

An important thing to remember about this approach is that if your business cannot meet its financial obligations, the lender can pursue your personal assets—such as your savings, home, or other personal property—to recover the debt.

Use a dedicated personal credit card for business expenses

Using a dedicated personal credit card for your business helps you keep expenses separate and start building a credit history for your business. Even if you don’t have access to a business credit card, paying off your personal card on time can demonstrate responsible credit management.

Co-sign for business loans or lines of credit

Co-signing means that you agree to take responsibility for a loan or credit line if the primary borrower (in this case, the business) is unable to repay it. When you co-sign, you’re essentially guaranteeing that if the business can’t repay the debt, you’ll be held liable.

The co-signer is often a business owner, a partner, your spouse, a close family member, or a friend with a strong credit history.

This makes sense for small business owners with limited credit history or a low credit score, as a co-signer with stronger credit can help secure a loan or credit line. It’s a big responsibility, however, since it puts your personal credit at risk if the business fails to pay.

Common mistakes that can damage business credit and how to avoid them

Building business credit is a long-term play, and small missteps can quickly set you back.

We cover the most common pitfalls and how to steer clear of them so you can keep your business credit on solid ground from day one.

• Missing or late payments: Late payments on business credit cards, vendor invoices, utility bills, or loan installments can tank your business credit fast. Lenders and bureaus see this as a sign that your business may be risky to work with

Bluevine Tip

Set up autopay for predictable monthly payments. For vendor accounts (like office supplies or wholesalers), use digital tools or accounting software to flag due dates five to seven days in advance. If you’re working with net-30 or net-60 vendors, aim to pay early when possible.

• Using personal credit for most business expenses: This is a common trap—over half of new small businesses end up tapping personal funds at some point—but relying heavily on personal credit cards or loans to fund your business blurs the line between personal and business finances. It can hurt your personal credit score and hinder your ability to build a strong, independent business credit profile, which is essential for accessing better business financing and growth opportunities down the line.
• Not separating personal and business finances: Failing to separate your finances can create a bookkeeping nightmare, making it hard to track expenses, prove business creditworthiness, and even complicate tax preparation, potentially leading to errors or missed deductions. It also puts your personal assets at risk if your business runs into financial trouble.
• Ignoring business credit reports: Many business owners overlook their credit reports, but these profiles—containing details like your payment history with suppliers, credit utilization, and any legal filings—directly impact your ability to secure loans, lines of credit, or favorable terms with vendors. Any errors or outdated info can negatively affect your creditworthiness if left unaddressed.
• Applying for too many credit accounts at once: Applying for multiple business credit accounts in a short span can ding your credit score and make lenders think you’re overleveraged or scrambling for cash. It’s a red flag that can hurt your chances of getting approved.

Bluevine Tip

Apply with purpose. Only go after credit that supports real business needs, and space out applications to avoid unnecessary credit checks. Do your homework ahead of time so you’re only applying where you have a strong shot.

• Carrying high credit card balances: High credit card balances can hurt your business credit score because they increase your credit utilization ratio, which is the percentage of available credit you’re using. A higher ratio signals to lenders that your business may be struggling financially, which can make it harder to secure new credit or favorable terms.

Bluevine Tip

To maintain a strong credit profile, keep your utilization rate under 30%. Regularly pay down your credit card balances, and if your business needs more flexibility, request higher credit limits.

How Bluevine can support your business credit journey

At Bluevine, we know strong business credit is key to your growth. That’s why we offer flexible credit options, like the Bluevine Line of Credit, designed to help newer or growing businesses build credit and access working capital. You can apply online with no impact to your credit score and get a decision in minutes for lines up to $250,000.

As you build your credit with on-time payments, you may become eligible for longer-term repayment plans. With transparent reporting and fast access to funds, Bluevine helps you grow your business while keeping personal and business finances separate.

Business credit FAQs

How long does it take to build business credit?

This timeline depends on factors such as your business’s age, the types of credit you use, and how reliably you meet your payment obligations.

Can I get business credit without a personal guarantee?

To qualify for credit without one, your business usually needs a strong existing credit history, substantial assets, and a proven track record of financial stability.

Do all vendors report to credit bureaus?

That’s why it’s beneficial to work with vendors known to report, or politely ask your vendors if they can report your positive payment history, to help build your credit profile.

How does business credit affect loan eligibility?

Maintaining good business credit shows lenders that your business is trustworthy and capable of managing debt.