Most small business owners know their personal credit score, but far fewer pay attention to their business credit score — or even realize they have one. But if you ever want to borrow money, negotiate better payment terms, or land big contracts, your business credit score plays a critical role.
Here’s why it matters — and how to start building strong business credit today.
- What Is a Business Credit Score?
Just like personal credit, your business credit score is a measure of how reliable and creditworthy your business is. Lenders, suppliers, and even potential partners may check this score before doing business with you.
Key factors include:
- Your payment history with vendors and lenders
- The amount of debt your business carries
- How long your business has been around
- Public records like liens or judgments
- Why Business Credit Matters (Even if You Don’t Need a Loan Today)
A strong business credit score helps you:
- Qualify for loans with better rates and terms
- Negotiate better deals with vendors (like longer payment terms)
- Separate your personal and business finances
- Build credibility with future partners and investors
Even if you’re not borrowing now, having strong credit ready to go means you can move fast when opportunity knocks.
- How to Build and Improve Business Credit
If you’ve never thought about your business credit, don’t worry — here’s how to get started:
- Incorporate Your Business
Set up an LLC or corporation to separate your personal and business credit. - Get an EIN and D-U-N-S Number
Your EIN (Employer Identification Number) from the IRS is like a social security number for your business. A D-U-N-S Number (from Dun & Bradstreet) helps establish your business credit file. - Open Business Accounts
- Open a business bank account
- Get a business credit card (and use it wisely)
- Work with vendors who report payments to credit bureaus
- Pay On Time (or Early)
On-time payments are the #1 factor in building strong business credit. Set reminders or automate payments when possible. - Monitor Your Score
Check your business credit reports regularly through companies like:
- Dun & Bradstreet
- Experian Business
- Equifax Business
Correct any errors quickly — mistakes happen more often than you think.
Final Thought
Strong business credit is like a financial safety net — even if you never need to borrow money, it opens doors to better deals, better relationships, and faster growth.
Treat your business credit like an asset — because it is.
About the Author:
Joe Herskowitz, EA, is the President and CEO of Lionstone Bookkeeping+, where he helps small and medium-sized businesses take control of their finances with expert bookkeeping and financial insights. With years of experience in business finance, Joe is passionate about making numbers work for business owners—not against them.
Have a bookkeeping or business finance question?
Reach out to Joe at joe@lionstonebookkeeping.com or call/text 732-803-7793 (no WhatsApp).