New Business? Here’s How to Establish Credit the Right Way ⎪ Galaxy of Stars

How to Build Business Credit from Scratch

If you’re starting a business or running one without access to credit, you’re not alone. Many entrepreneurs rely on personal credit or cash—but building business credit can unlock financing, improve your credibility, and protect your personal finances.

Whether you’re a solopreneur, side hustler, or established business owner, here’s how to build business credit step by step—even if you’re starting from zero.

1. Set Up Your Business Properly

Before you can build business credit, you need to create a separate business identity. That means forming a legal business entity.

✅ Steps:

Choose your structure (LLC or corporation is best)
Get a Federal Employer Identification Number (EIN) from the IRS
Register your business with your state
Open a business bank account

💡 Tip: Using a sole proprietorship tied to your personal SSN won’t help you build true business credit.

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

A D-U-N-S Number is a unique nine-digit identifier issued by Dun & Bradstreet—one of the major business credit bureaus. Many lenders and vendors use it to check your business credit history.

✅ Apply for free at dnb.com

3. Open Accounts That Report to Business Credit Bureaus

Not all vendors and lenders report to business credit agencies. Choose partners that help you build your credit profile.

✅ Start with:

Net-30 accounts (vendors that let you pay invoices in 30 days)
Business credit cards
Fuel cards or office supply stores

✅ Check they report to:

Dun & Bradstreet
Experian Business
Equifax Business

4. Pay Your Bills Early (Not Just On Time)

One of the biggest factors in your business credit score is payment history. And paying early—if possible—can boost your score even faster.

✅ Tip: Set calendar reminders or use auto-pay when available.

5. Monitor Your Business Credit Score

Just like personal credit, your business credit score can affect your ability to:

Get loans or lines of credit
Negotiate better vendor terms
Apply for government or corporate contracts

✅ Tools to check your score:

Nav.com
Experian Business
Dun & Bradstreet CreditSignal

6. Keep Your Business Info Consistent

Make sure your business name, address, phone number, and website are the same across your EIN, bank account, vendor accounts, and credit bureaus. Inconsistencies can delay or block your credit-building progress.

7. Gradually Apply for Higher Credit Limits

Once you’ve established a track record of responsible payments, ask for increased credit limits. This helps boost your credit utilization ratio and shows lenders you’re low-risk.

Why Business Credit Matters

Strong business credit gives you access to:

Better loan terms and interest rates
More purchasing power
Vendor relationships and trade credit
Financial separation from your personal credit

And if you ever want to scale, bring on partners, or sell your business—it’s a must.

Final Thoughts: Start Building Early, Reap The Benefits Later

Business credit doesn’t build overnight—but starting now gives you more control over your company’s financial future. Treat your business like the powerhouse it is and set up the systems that set you up for long-term success.

👉 Want more business-building resources? Check out the Galaxy of Stars Finance Learning Center for guides, tools, and expert insights created for women and minority entrepreneurs.