Step 9 — Create Your Business Credit Profile
Establish creditworthiness for your business while keeping personal and business finances separate.
Build Strong Business Credit
Estimated time: 60–120 minutes
Creating a business credit profile is essential for securing funding, getting better loan terms, and separating your personal and business finances. Follow these steps and best practices to build a strong profile.
Personal Layer
- Ensure personal credit is in good standing before linking to business ventures
- Track personal contributions to business, including time, effort, and capital
- Understand how personal financial health can affect business credit indirectly
Business Layer
- Register your LLC or corporation legally
- Obtain an EIN for the business
- Open a dedicated business bank account for all transactions
- Establish trade lines with vendors that report to credit bureaus
- Monitor business credit using Dun & Bradstreet, Experian, or Equifax Small Business
- Maintain timely payments to build a strong credit profile
Tip: Focus on gradual credit building. Strong business credit opens doors to financing, vendor terms, and growth opportunities without relying on personal credit.