Glow up, but for your credit

Part 2: business credit

Building good business credit isn’t just about borrowing money, It’s about setting up a solid foundation for trust, opportunities, and growth. With a strong credit profile, you can land better deals with lenders, have more sway with vendors, and keep your personal and business finances separate (which is super important).

Here are smart, actionable tips to build and manage your business credit effectively:

1. Set Up Your Business Properly from Day One

Lenders and credit bureaus need to see that you’re a legitimate, structured business. Need help figuring out the steps to get there? We have a handy, dandy (free) checklist available for download here.

2. Get a D-U-N-S Number

This is different from an EIN (tax) number, and it’s NOT required. A D-U-N-S Number (Data Universal Numbering System) is created by Dun & Bradstreet, one of the main business credit bureaus. Many vendors and large companies require it in order to report your business credit activity and determine your creditworthiness. The good news? You can get it for free at dnb.com

3. Open Net-30 Vendor Accounts

These are suppliers (often called net-30 vendors) who allow your business to purchase products or services now and pay the invoice within 30 days. It’s a great way to manage cash flow while still getting the supplies you need to run your business. Many of these vendors report your payment history to business credit bureaus, which can help you build a strong business credit profile over time—as long as you pay on time.Order small items, pay early, and build a positive payment history.

• Uline

• Quill

• Grainger

• Summa Office Supplies

• Crown Office Supplies
  

4. Separate Your Finances Completely

Mixing personal and business finances can raise red flags for the IRS and potential lenders. To keep things clean and organized, always use your business bank account for business expenses. It’s also a smart move to get a business credit card (even a secured one if you’re just starting out). Try not to mix funds unless it’s absolutely necessary. Your bookkeeper will thank you!

5. Pay on Time (or Early!)

Just like with personal credit, your payment history plays a big role in building strong business credit. In fact, consistently paying early can actually boost your Paydex score, which is the rating system used by Dun & Bradstreet (there’s that DUNS number at work). To stay on top of it all, consider setting up automatic payments. It's an easy way to make sure you never miss a due date.

6. Monitor Your Business Credit Reports

There are three main credit bureaus that track your business credit: Dun & Bradstreet (D&B), Experian Business, and Equifax Business. Keeping an eye on your scores with all three is a smart move. Luckily, tools like Nav and CreditSignal by D&B make it easy to track your credit and get alerts, often for free or at a low cost.

7. Build Relationships with Lenders and Vendors

Strong business credit isn’t just about the numbers, it’s really about building trust. Working with banks that have small business programs can give you extra support and don’t be shy about asking vendors to report your on-time payments (some won’t unless you ask!). If you ever run into a rough patch, being proactive and upfront can go a long way in maintaining good relationships and protecting your credit.

8. Keep Your Credit Utilization Low

Pay down balances frequently, not just at the due date. Just like with personal credit, maxing out your business credit cards isn’t a great look, it can actually hurt your credit score. A good rule of thumb is to keep your usage under 30% of your credit limit. Paying down your balances regularly (not just when they’re due) can also help keep your score in good shape.

9. Don’t Over-Apply for Credit

Just like with personal credit, every time you apply for business credit it can trigger a credit inquiry. Too many inquiries at once can ding your score, so it’s best to apply strategically. Try not to submit a bunch of applications at the same time and use pre-qualification tools when you can to see your chances without affecting your score.

10. Leverage Business Credit for Growth, Not Survival

Once your business credit score starts looking good, make the most of it! You can use it to negotiate better terms with your suppliers, get funding for things like equipment, marketing, or even new hires, and ease up on using your personal credit for business needs. It’s all about putting that strong credit to work for your growth.

Building strong business credit takes time, consistency and a bit of strategy, but it’s absolutely worth the effort. With a solid credit foundation, you’re not just setting your business up to borrow money—you’re opening doors to better deals, stronger relationships, and more flexibility as you grow. Start small, stay organized, and keep these tips handy as you build. Your future self (and your business) will thank you!