Advanced Guide
Business Credit Mastery
Complete guide to establishing, building, and leveraging business credit for growth and funding opportunities.
📖 35 min read🎯 Advanced Level💼 Business Focus
Why Business Credit Matters
Business credit is essential for protecting your personal assets while building credibility with suppliers, lenders, and partners. Unlike personal credit, business credit is tied to your business entity and can provide significantly higher credit limits.
Benefits
- • Protects personal credit and assets
- • Higher credit limits than personal credit
- • Better financing terms and rates
- • Builds business credibility
- • Enables business growth and expansion
Key Differences
- • Based on EIN, not SSN
- • Separate credit file and score
- • Different reporting agencies
- • Focus on business performance
- • Industry-specific considerations
Business Credit Reporting Agencies
Dun & Bradstreet
DUNS Number • Paydex Score (1-100)
Most widely used by lenders and suppliers
Experian Business
BIN Number • Intelliscore (1-100)
Focus on risk assessment and fraud prevention
Equifax Business
Business Risk Score (101-992)
Strong in financial services and banking
Phase 1: Business Foundation (Months 1-3)
1. Legal Business Entity
Required Actions:
- • File with Secretary of State
- • Obtain Articles of Incorporation/Organization
- • Create Operating Agreement/Bylaws
- • Register business name if different
Entity Types:
- • LLC (Most common for small business)
- • Corporation (C-Corp or S-Corp)
- • Partnership (Limited or General)
- • Avoid sole proprietorship
2. Federal Tax ID (EIN)
Obtain your Employer Identification Number (EIN) directly from the IRS - it's free!
Important:Never pay for EIN services. Apply directly at irs.gov or call 1-800-829-4933
3. Business Bank Account
Open a business checking account separate from personal accounts.
Required Documents:
- • Articles of Incorporation/Organization
- • EIN confirmation letter
- • Operating Agreement/Bylaws
- • Personal identification
Bank Selection Tips:
- • Choose banks that report to business bureaus
- • Look for SBA preferred lenders
- • Consider local banks for relationship building
- • Avoid banks requiring personal guarantees
4. DUNS Number Registration
Register for your free DUNS number with Dun & Bradstreet.
- • Visit fedgov.dnb.com/webform for free registration
- • Takes 1-2 business days to process
- • Required for government contracting
- • Foundation for D&B business credit file
Phase 2: Credit Profile Development (Months 4-9)
Trade Lines - Foundation Building
Starter Trade Lines (Net 30 Terms)
Office/Technology:
- • Staples Business Credit
- • Dell Small Business
- • Amazon Business
- • Office Depot Business
Utilities/Services:
- • Business phone lines
- • Commercial gas/electric
- • Business internet service
- • Waste management services
Payment Strategy
- • Pay all invoices 2-3 days early
- • Keep utilization below 30% on credit accounts
- • Use each account monthly with small purchases
- • Request payment history reporting confirmation
Business Credit Cards - Level 2
Starter Cards (Personal Guarantee)
- • Capital One Spark Classic
- • Chase Ink Business Unlimited
- • Wells Fargo Business Secured
- • Bank of America Business
Advanced Cards (No PG)
- • American Express Business Gold
- • Chase Ink Business Preferred
- • Capital One Spark Cash Plus
- • Citibank Business Cards
Phase 3: Advanced Funding (Months 10+)
Business Loans
SBA Loans
- • 7(a) loans: Up to $5M
- • Microloans: Up to $50K
- • 504 loans: Real estate/equipment
- • Express loans: Fast approval
Term Loans
- • Traditional bank loans
- • Equipment financing
- • Working capital loans
- • Commercial real estate
Alternative Funding
Revenue-Based
- • Merchant cash advances
- • Invoice factoring
- • Purchase order financing
- • Revenue-based loans
Modern Options
- • Online lenders
- • Peer-to-peer lending
- • Crowdfunding
- • Business grants
Monitoring and Maintenance
Regular Monitoring Schedule
Monthly:
- • Review all statements
- • Check payment dates
- • Monitor utilization
- • Track new inquiries
Quarterly:
- • Pull business credit reports
- • Update business profiles
- • Review credit limits
- • Dispute any errors
Annually:
- • Complete business profile update
- • Financial statement updates
- • Credit limit increase requests
- • Strategic planning review
Timeline Overview
Months 1-3Foundation
Months 4-9Building
Months 10+Advanced Funding
Common Mistakes
Mixing personal and business expenses
Not establishing business entity first
Applying for credit too quickly
Neglecting payment timing and amounts