top of page

Building Business Credit: Proven Strategies & Insights

Updated: May 29

Establishing business credit early on is crucial for growth, but it can be daunting without reliable guidance. Let's break down the steps to help you build strong business credit and improve your chances of securing funding. These tips are based on expert advice and thorough research, but remember, they work only if you put them into action.

Why Building Business Credit Matters

Building business credit is essential for securing substantial funding, which is key for scaling your business. A strong business credit score can lead to better loan terms, higher credit limits, and lower interest rates. While your credit impacts your business credit, especially for new businesses, focusing on both can strengthen your financial profile.

How Tradelines Help Build Business Credit

Tradelines are credit accounts opened in your business's name, such as credit cards or loans. Having at least three tradelines, like Net-30 accounts, can improve your business credit score. Net-30 accounts allow you to purchase goods or services and pay within 30 days, helping you build credit as long as you pay on time.

Steps to Establish and Build Business Credit

1. Incorporate and Register Your Business

Structuring your business as an LLC or corporation can make it easier to get funding and improve borrowing power. It also helps separate your business and personal finances.