Business credit is a separate profile tied to your company, reported by agencies such as Dun & Bradstreet, Experian Business and Equifax Business. Built correctly, it lets the business borrow without your personal file carrying every decision.
The foundation must come first
- A registered legal entity (LLC or corporation) in good standing
- An EIN from the IRS and a business bank account in the entity's name
- A D-U-N-S number from Dun & Bradstreet
- A business address, phone listed under the business name, and a matching web presence
- Consistency: the exact same name, address and phone everywhere
Build a payment history the agencies can see
Start with vendor accounts and suppliers that report net-30 terms, then move to store and fleet accounts, and eventually to business credit cards and lines. Three to five reporting accounts paid early is usually the point where a profile becomes usable.
Business scores work differently
The D&B PAYDEX score runs from 1 to 100 and is driven almost entirely by whether you pay early, on time, or late. Paying invoices before the due date is what produces a top-tier score — there is no equivalent on the personal side.
Personal guarantees and mixing funds
Early on, most lenders still require a personal guarantee, so your personal file matters even while you build. Keep the accounts strictly separate anyway: mixing personal and business spending weakens the business profile and can undermine the liability protection of the entity.
This content is educational only and is not legal, tax or financial advice. Arreglocredito.com is not a law firm. Consumers have the right to dispute inaccurate information directly with the credit reporting agencies at no cost. Individual results vary.