New to business credit? Here’s everything you absolutely need to know, condensed into the essentials. Bookmark this for reference whenever you need a quick reminder.

What Is Business Credit?

A separate credit rating that evaluates your company’s creditworthiness independent of your personal credit. It’s based on how your business pays vendors, creditors, and suppliers.

Who Cares About It?

Banks, lenders, vendors, suppliers, and investors. Anyone evaluating whether to extend credit or capital to your company.

How Is It Calculated?

Primarily through a Paydex score (0-100) calculated by Dun & Bradstreet based on your payment patterns. On-time payments boost it. Late payments hurt it.

How Long Does It Take?

You can establish foundational credit in 90 days. Fundable credit takes 12 months. Strong credit takes 18-24 months. Excellent takes 3+ years.

How Do I Start?

• Register your business
• Get an EIN from the IRS
• Open a business bank account
• Register for a DUNS number
• Establish trade credit with vendors
• Get a business credit card

What Should I Do?

• Make every payment on time—always
• Keep credit utilization below 30%
• Never mix personal and business finances
• Monitor credit reports quarterly
• Diversify credit types (vendor credit, credit card, line of credit)

What Should I Avoid?

• Late payments
• Maxing out credit
• Commingling personal and business money
• Closing old credit accounts
• Ignoring credit reports for errors

Why Does It Matter?

Better rates, more lending access, lower personal guarantee requirements, vendor preferential terms, and the ability to grow your business without risking personal assets.

The Bottom Line

Business credit is simple if you’re disciplined and intentional. Start today. Build consistently. Reap the rewards for years.