Building business credit: A guide for small businesses

A clear 12-step roadmap to establish, grow, and protect your business credit

Starting and growing a small business often requires financial support from suppliers, lenders, or even landlords. A strong business credit profile can help you qualify for loans, secure better payment terms, and signal professionalism to partners. Your business credit score is more than just a number, as it reflects how responsibly your company manages money.

Here’s a step-by-step roadmap with twelve practical ways to build and strengthen your business credit score.

1. Set up your business and apply for an EIN

Give your business a legal identity by choosing your structure. Whether that is a sole proprietorship, LLC, partnership, or corporation, you’ll then apply for an Employer Identification Number (EIN). It’s like a Social Security number for your company and is essential for opening accounts, filing taxes, and applying for credit.

2. Keep business information consistent

Consistency builds credibility. Use the same name, address, phone number, and email everywhere. IRS filings, bank records, vendor accounts, and credit bureaus. Even small mismatches can slow reporting or cause errors.

3. Open a dedicated business bank account

Separate business and personal finances. A business bank account shows lenders you’re serious. It also makes bookkeeping easier and helps you stay organized when managing expenses. See which M&T business checking account option lines up with your goals.

4. Register for a D-U-N-S number

Get on Dun & Bradstreet’s radar. A D-U-N-S Number creates your profile with D&B, a leading business credit bureau. This free step allows lenders, vendors, and partners to see your company’s credit history.

5. Apply for a business credit card

Start building credit with smart spending. Choose a credit card that reports to business bureaus. Use it for everyday purchases, keep balances low, and pay it off on time. Responsible use shows you can manage credit wisely.

6. Establish trade credit with vendors

Build history with supplier terms. Ask vendors about Net-30 or Net-60 terms and whether they report payment activity. Trade credit helps build your score without relying on loans or traditional credit cards.

7. Always pay bills on time or early

Payment history matters most. On-time payments are crucial. Paying early can boost your PAYDEX business credit score with Dun & Bradstreet and show partners you’re financially reliable. The score ranges from zero to 100, with higher scores indicating lower credit risk.

8. Use credit responsibly and keep balances low

Show lenders you can manage debt. Avoid maxing out your credit lines. Keeping balances well below your limit signals strong financial health and sound money management.

9. Avoid opening too many accounts at once

Be strategic with applications. Each credit application may result in a hard inquiry. Too many at once can hurt your score. Apply only when it makes sense for your business

10. Build credit depth over time

Let your history work for you. Keep older accounts open and request credit limit increases instead of opening new cards. A long, stable credit history builds confidence with lenders.

11. Check your business credit score regularly

Stay proactive and protect your profile. Check reports with bureaus like Dun & Bradstreet, Experian, and Equifax. Dispute errors quickly and add trade references if allowed. Regular monitoring also helps catch fraud.

 12. Limit personal credit reliance and guarantees

Shift toward true business credit. It’s normal to start with personal credit, but over time, move activity to your business accounts. As your profile strengthens, ask lenders to reduce personal guarantees.

It takes soft skills, too

Building business credit isn’t just about forms, numbers, or payment history. It’s also about the way you manage relationships.

Communicating clearly with vendors, negotiating fair terms, and showing reliability all require trust and professionalism. These “soft skills” often make the difference between simply having credit and building strong, lasting partnerships that help your business grow.

Ready to go further? Explore the M&T Business Education Center for expert resources, community insights, and practical tools to help your small business thrive.