It's All About - TRUST

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Just like you have personal credit, your business has business credit. Business credit includes all the credit available to your business, from credit lines without a personal guarantee (PG) to those that require one. When a PG is involved, your personal assets are at risk.  To apply for and use business credit, you'll need your EIN, and often your SSN for identity verification.

Building business credit is a process, but it doesn't have to take years. While it often takes three years for businesses to establish strong credit, you can start building a solid business credit profile sooner with the right steps. 

Start by ensuring your business is structured properly — obtain licenses, open a business bank account, and set up a credit profile with major credit bureaus. It's crucial to separate your personal and business finances, which means incorporating your business, using a dedicated business address and phone number, and having a professional business website with a matching email domain.

To build business credit, your business must be a separate legal entity. Incorporating as a C-corporation or an S-corporation can help establish this separation and protect your personal assets. Check with your state's Secretary of State for the specific requirements and fees.

Stop using your SSN for business credit applications. Instead, use your EIN from the IRS — it's free and quick to obtain. Also, get a DUNS number from Dun & Bradstreet, which is essential for tracking your business credit.

Register with Dun & Bradstreet, Experian, and Equifax to establish your business credit profiles. Regularly check your reports for accuracy, as errors can hinder your ability to secure credit.

Ensure your business name, address, and contact information match across all platforms and official documents. Even small discrepancies can cause your credit applications to be flagged as fraudulent.

Begin with vendors that extend credit to businesses with limited or no credit history. Make sure they report your payment history to the credit bureaus — timely payments are essential for building a strong credit profile.

Mistakes or inaccuracies in your business credit report can damage your score. Regularly monitor your business credit across all major bureaus and correct any discrepancies promptly.