Business Credit Building Step 1:
Building Your Business Credibility
and creditors have
of your business
is critical to your
ability to build
applying for business credit, a business must
ensure it meets or exceeds all lender credibility
It is very important that you use your exact
business legal name. Your full business name
should include any recorded DBA filing you will
be using. Ensure your business name is exactly
the same on your corporation papers, licenses,
and bank statements.
You can build business credit with almost
any corporate entity type. If you truly want to
separate business credit from personal credit
your business must be a separate legal entity not
a sole proprietor or partnership. You need to be a
Corporation or an LLC to separate personal from
Whether you have employees or not, your
business entity must have a Federal Tax ID
number (EIN). Just like you have a Social Security
Number, your business has an EIN. Your Tax ID
number is used to open your bank account and
to build your business credit profile. Take the
time to verify that all agencies, banks, and trade
credit vendors have your business listed with the
same Tax ID number.
Business Address must be a real brick and mortar
building, deliverable physical address, preferably
not a home address. It cannot be a PO Box and
cannot be a UPS address. Some lenders will not
approve and fund unless these criteria are met.
You must have a dedicated business phone
number that is listed with 411 directory assistance,
It’s actually not hard to build business credit.
You just need to know the proper steps to
get started. Business credit building isn’t
that much different than consumer credit.
You start off with no credit established.
You then get approval for new credit that
reports to the BUSINESS credit reporting
agencies helping you establish and initial
credit profile and score.
Once your profile and score are established,
you can then use that profile to start getting
more and more credit. As you grow your
credit you will get access to more useful
credit such as store credit cards and cash
accounts such as Visa and MasterCard credit
you can use anywhere. Your credit limits will
also grow, so you’ll have access to more and
more credit as you continue to expand your
Let’s jump in a take a look at the actual
business credit building steps.
under the business name. Lenders, vendors,
creditors, and even insurance providers will verify
that your business is listed with 411. A toll-free
number will give your business credibility, but
you must have a LOCAL business number for the
listing with 411 directory assistance.
Lenders perceive 800 Number or toll-free
phone numbers as a sign of business credibility.
Even if you’re a single owner with a homebased business, a toll-free number provides the
perception that you are an even bigger company.
It’s easy and inexpensive to set up a virtual local
phone number or a toll free 800 number.
A cell or home phone number as your main
business line could get you flagged as an unestablished business that is too high of a risk.
DON’T give a personal cell phone or residential
phone as the business phone number. You can
forward a virtual number to any cell or land line
Credit providers will research your company on
the internet. It is best if they learned everything
straight from your company website. Not having
a company website will cripple your chances of
getting business credit. There are many places
online offering affordable business websites so
you can have an internet presence that displays
an overview of your company’s services and
It is important to get a company email address
for your business. It’s not only professional, but
greatly helps your chances of getting the thumbs
up from a credit provider. Setting up a business
email address is just too easy and inexpensive to
One of the most common mistakes when
building credit for your company is nonmatching
business addresses on your business licenses.
This is for reporting. Plus, you need to have the
required licenses for your type of business to
You will need to contact the
State, County, and City Government offices to see
if there are any required licenses and permits to
operate your type of business.
You must have correct listings for state business,
county license and/or permit, city license and/or
permit and IRS filings. Take the time to verify that
main agencies (State, IRS, Bank, and 411 national
directory) have your business listed the same
way and with your Exact Legal Name. Also take
the time to ensure every bill you get (power bill,
phone bill, landlord, etc.) has the business name
listed right and comes to the business