Graph showing the progression of building business credit from start to success

Building Business Credit: 3 Steps

Building Business Credit

Want to build some serious business cred? Look no further! Building business credit doesn’t have to be a struggle.

Starting a business can be a major undertaking, and making sure you have the financial resources you need to succeed is crucial. One way to ensure you have access to the funds you need is by building your business credit. But where do you start? Here are some tips for getting your business credit off the ground:

1. Start with vendor credit.

Companies like Uline, Quill, FedEx, and others offer what’s called “Net 30” invoicing, which means you have 30 days to pay your bill. And the best part? These companies usually don’t check your personal credit. However, they may require you to make an initial purchase or two before they’ll extend the offer. Make sure you spend some time researching which vendors and credit cards report to Dun & Bradstreet, as these accounts will give you the biggest boost to your business credit, or Paydex score. To establish your Paydex score, you’ll need at least four accounts and have made purchases of $50 or more over three billing cycles. And don’t forget to pay those invoices early – the earlier you pay, the better your score will be!

2. Get a business credit card.

Once you have a Paydex score of 80 or higher, it’s time to start looking for business credit cards. These cards often come with a low interest rate for the first year, which is a major plus. And if you have personal credit card debt that you’re struggling to pay off, you can transfer those balances to a business credit card and improve your personal credit score almost immediately. Just remember, your personal credit score and your Paydex score are two different things – Paydex doesn’t penalize you for carrying high balances like your FICO score does. Just make sure you always pay early and as much as possible.

3. Consider a business loan

Once you have a high enough Paydex score, you may be eligible for a business loan. And unlike personal loans, business loans often have a higher borrowing power. So if you’re ready to take your business to the next level, a business loan may be the way to go. Just make sure you have a solid plan in place to ensure your business is profitable once you have the funds you need.


In conclusion, building business credit takes time and patience, but it’s worth it. By establishing a strong foundation and putting in the work, you’ll give your business the best chance of success. So don’t be afraid to roll up your sleeves and get to work – your future self (and your bank account) will thank you!

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