How To Build Business Credit Step By Step

Two smiling businessmen shaking hands while standing in an office.

Building business credit is an important step in establishing the financial stability and credibility of your business. It can help you secure loans, lines of credit, and other financial products that can help your business grow and thrive. Here is a step-by-step guide on how to build business credit:

1. Incorporate your business: Incorporating your business as a limited liability company (LLC) or corporation can help you establish a separate legal identity from your personal credit, which can make it easier to build business credit.

2. File the business entity, LLC, S-corp, C-corp, etc. (I use because it is free. Legal zoom will do this for you as well but not free.)

3. Obtain a Federal Employer Identification Number (EIN): An EIN is a unique nine-digit identification number assigned to your business by the IRS. You can use your EIN to open business bank accounts, apply for credit, and file taxes. (Can be done on the IRS website)

4. Create a business phone number and address ( I use

      • Use a local phone number
      • Don’t use PO Box

5. Open a business bank account: Opening a business bank account can help you establish a financial history for your business. Make sure to use your EIN when opening the account to help build your business credit.

6. Get listed and become bank compliant

    • use list yourself and
    • create yelp profile (get 3 to 5 reviews)

7. Know your SBSS score

In most cases, the SBA won’t approve loan applications for businesses unless their SBSS score is 160 or more.

175 is a good score for a Small business loan

185 – 198 for No doc loans (no tax returns and no bank statements)

Scores range from 0 to 300

8. Set up business credit accounts: Start building your business credit by setting up credit accounts with vendors and suppliers that report to business credit bureaus. You can also apply for a business credit card, which can help you establish a credit history for your business.

9. Monitor your business credit: Make sure to regularly check your business credit report to ensure that all of your credit accounts are being accurately reported. If you find any errors, dispute them with the credit bureau as soon as possible.

10. Pay your bills on time: Payment history is one of the most important factors in building business credit, so make sure to pay all of your bills on time. Late payments can significantly damage your credit score.

By following these steps, you can effectively build business credit for your company, which can help you secure the financial resources you need to grow and succeed.

Important Links:

Incfile – Free LLC Filing + State Fee

Anytimemailbox – Virtual Mailbox

Opus – Opus Virtual Offices

Regus – Regus Virtual Offices – Get listed in Directory Assistance for free!  – Get listed in 411 in under 24 hrs

Quick Data Points for anyone who wants to run the BOA ( Bank of America) Business Auto Loan play:
700-720+ FICO Score helps, They Pull Experian (unfreeze for automatic approvals)
open the business bank account first and deposit 200-900$ let it sit for 2-3 weeks then apply online…
They don’t ask for docs but keep the stated income around 100k
.. had a few people get 4 loans approved with one hard pull
Run the Play

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