Business Credit Repair: How to Get Your Business Credit Back on Track 

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business credit repair

Since you’re interested in repairing your business credit, I’ll assume that you had a good credit score at one point. Now, for one reason or another, it has taken a hit (If that’s not the case, and you haven’t established credit yet, you might want to start here). 

First of all, if your business credit is not so great, don’t beat yourself up — it happens more than you would think. 

Don’t believe me? According to US Courts, in 2021, a total of 14,347 businesses filed bankruptcy in 2021. If you think this might have been a COVID-related spike, think again — the same source cites 23,157 business bankruptcy filings in 2017, a couple of years before the pandemic began. 

But, I don’t want you to focus too long on anything negative. Instead, let’s be solution-oriented and explore how business credit repair works. 

Bear in mind that business credit is not the same as personal credit and some of the laws protecting consumers don’t apply, which isn’t necessarily a bad thing. In fact, business credit is much easier and faster to restore than personal credit. 

This is what’s in store: 

Now, here’s everything you need to know to restore your business credit. 

What is Business Credit Repair? 

Business credit repair or restoration typically refers to a third-party service that attempts to get negative information, like missed or late payments and defaulted accounts, removed from business credit reports in exchange for a payment. 

How do I repair my business credit?

A business might have a net 30 account on their report that shows as a late or slow pay that they want to clear up. Or, maybe they need to remove an old address from the credit bureau’s record. Business credit repair organizations might offer a service to help for a monthly or one-time fee in addition to any settlement offers they submit to creditors. 

Luckily, in most cases, these services are not needed. You can easily restore business credit on your own, which is the primary focus of this guide. 

The Golden Rule of Good Credit 

Whether you’re talking about business or personal finance, here’s the golden rule of good credit: Make your payments to lenders on-time, as agreed. 

While this may seem too obvious, it’s crucial. If you make your payments to lenders as agreed, you are very likely to maintain a high credit score. 

So, when life gets in the way, and you can’t make business loan and credit card payments like you expected, stay in communication with your lenders. As soon as you think you might miss a payment, pick up the phone and reach out to ask about your options. 

If you’re reading this early, at the first sign that your credit is about to slip — you never know — the above advice might be enough to keep you afloat while you figure out your finances. 

If you’re already sitting on a low business credit score, it’s time to take action.  

8 Steps to Repair Your Business Credit

Here’s the process, step-by-step, to restore your business credit. 

1. Review Your Business Credit Reports

The first thing you need to do when restoring your business credit is get an up-to-date copy of each of your credit reports from the business credit bureaus. 

There are three main business credit bureaus that most lenders will use to determine whether or not your company is worthy of financing. 

Get a copy of your report from each bureau: 

  1. Dun & Bradstreet: Access your PAYDEX report 
  2. Experian Business: Get your Experian business credit report 
  3. Equifax Business: Obtain your Equifax business credit report

Download or print copies of each report so you can thoroughly review for accuracy. 

Fast credit repair

You may be able to obtain copies of your business credit report at no cost if you have recently been denied financing. Within 90 days of your denial, mail a request to the creditor and ask that they send a copy of your business credit report to you. 

Set up a free account with Nav to access and monitor your Experian and Dun & Bradstreet business credit summaries. 

Note: In addition to these three bureaus, I have heard of a couple of outliers here and there. But, I don’t recommend you pay them any attention (unless you are getting denials after cleaning up the main 3). Every business credit lender I’ve ever worked with has used one of the above to determine a company’s creditworthiness. 

Recommended: How to Check Your Business Credit Score

2. Note Every Item You Want Removed From Each Report

The more organized you are at this stage, the better. Examine every potentially negative item on your report and read through your company details for inaccuracies. 

Incorrect and negative information on your business credit report not only decreases your chances of obtaining financing, but adds additional hurdles. For example, you might pay higher insurance premiums, be charged higher interest rates on the funds you do receive, and find it difficult to rent equipment or office/retail space because of a mistake on one of your reports. 

Experian credit repair

Look for any slow or late payments on your accounts that might affect your score. In addition, look for old business addresses or outdated contact information that you would like removed. 

For each report, list each item that you would like reviewed for removal. Include the following: 

  • The account number
  • The date of the disputed information
  • Explanation of the inaccuracy
  • Company that provided the disputed information
  • Type of disputed information (contact, missed/late payment, etc.)

Once you have completed your list, you’re ready to move forward. 

3. Dispute Entries in Your Dun & Bradstreet Report

For Dun & Bradstreet, the simplest option is to dispute incorrect items online via your account dashboard. You can pay for an upgraded account, but all you need is the free version (there aren’t many scenarios where I recommend paying for a premium account). 

Simply login to your account > navigate to D-U-N-S Manager > scroll down to Trade Payments in the left sidebar.

Your trade accounts will appear in the dashboard with an option to select from the dropdown under Initiate Investigation. 

How long does it take to fix business credit?

Follow the prompts to continue at the bottom right of the screen until you come to the summary page. 

Does an LLC have a credit score?

Accept the terms of service, then click Submit. 

You will receive a reply relatively quickly, letting you know whether the investigation has resulted in a removal of the items you requested or not. 

4. Dispute Entries in Your Experian Business Report

The best way to execute Experian business disputes is to print your full, updated report, circle the incorrect information, and write-in the reason you are disputing each item. 

Scan and email the edited report to businessdisputes@experian.com, along with any additional documentation you have to support your request for information removal. 

Alternatively, you can open an account with Experian business, then call in to initiate a dispute: (888) 397-3742. When you place the call, have your list handy so that you can accurately indicate which items you want the bureau to investigate. 

5. Dispute Entries in Your Equifax Business Report 

Equifax disputes can be handled online or via mail, email, or phone. Recently, I’ve seen email disputes resolved within about one week. 

Equifax Inc. 

P.O. Box 740249

Atlanta, GA 30374-0249

commercialdisclosures@equifax.com 

(800) 727-8495

Business credit dispute template

Download business credit dispute template PDF

6. Reach Out Directly to Creditors 

After you’ve waited about a month after initiating your dispute(s), or you’ve heard back from the bureaus, are there any red flags still on your reports? If so, it might be worth reaching out to the creditor directly. 

In some cases, you may be able to negotiate a deal to get negative information removed from your account. For example, if an account shows unpaid, you might be able to get the creditor to report the account paid in full with a lump sum payment. 

If you do negotiate a deal like this, be sure that you get the agreement in writing, including the date by which the creditor will report to the credit bureaus. 

7. Establish New, Healthy Accounts

A crucial ingredient for a strong business credit score is to have healthy accounts. If your credit profile is sparse, it might be a good idea to add a few accounts that report on-time payments to the business credit bureaus. 

After your reports have been cleaned up, you might benefit from opening new accounts — depending on how established your business credit profile is. 

To get started, see our list of 41+ Companies That Help Build Business Credit. 

Be sure to keep any revolving accounts below 30% utilization for an optimal impact to your credit score. For example, if you have a revolving business credit card with a $30K limit, never use more than $10K at a time. Better yet, pay the card off in full each month. 

Ask for credit limit increases on revolving accounts. From time to time, some creditors will automatically increase your spending limit. Other creditors require that you make the requests for increases yourself. If you can request an increase from your account dashboard, go ahead — if not, pick up the phone and call customer service and ask if you qualify for a higher spending limit.

8. Continue to Monitor Your Business Credit

Like personal credit, it’s important to monitor your business credit and keep an eye out for inaccuracies. If you haven’t already, sign up for a Nav account. 

Nav can help you monitor your business credit… and more. 

  • Get actionable insights into credit and cash flow 
  • See relevant financing recommendations
  • Research customer and partner credit profiles
  • Boost your chances of obtaining business credit

It doesn’t hurt to maintain accounts with all three bureaus, but you can accomplish most of what you need from a single dashboard with Nav alone. 

Final Thoughts

Credit repair is important when you want to increase your business financing limits. Start by reviewing your reports from the three major business credit bureaus. Then, dispute any inaccuracies you find on your reports. If you need to, reach out to creditors directly to clean up any accounts in poor standing. After that, maintain healthy accounts, and monitor your business credit to watch for new inaccuracies or mistakes. 

To learn how to obtain $100K in business credit in 30 days, join Business Credit Workshop today.

41 Companies That Help Build Business Credit [Beyond Net 30 Vendors]

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companies that help build business credit

Countless SMB owners and startups are on the hunt for companies that help build business credit. With a quick Google search, it’s pretty easy to find lists of vendors that report on-time payments to business credit bureaus. But, once these vendors are discovered, there’s not a ton of information that explains precisely how to leverage these vendors to improve your business credit score and obtain large credit lines. 

Surely, that’s what you’re looking for. The process of building business credit isn’t difficult, but it is complex and requires guidance. So, are there companies that can actually help you build business credit? And, where can you find them? 

Yes, there are — And, you’ve found the [ultimate] list! Here, you’ll find net 30 vendors, business credit coaching & services, and business credit monitoring companies that can help you build business credit. The companies listed here are dedicated to helping you establish, build, and procure business credit; they can play a crucial role in your credit building journey, if that’s what you’re after. 

Here’s what’s in-store: 

Get ready to find out exactly where to turn when you want to establish, build, and obtain large lines of business credit. 

First, Learn About Net 30 Vendors [+List of 31]

tier-2 business credit vendor

If you’re not familiar with net 30 vendors, they are merchants that allow you to essentially buy products and services now and pay later via business tradelines — typically 30 days later. In the business credit building world, you’re looking for companies like this that also provide the opportunity to have on-time payments reported to business credit bureaus. 

Companies like Staples and HD Supply can actually report on-time, net 30 payments made on behalf of your business to business credit bureaus. We have a list of 31 (and growing) companies that you can order products and supplies from, and pay on time to boost your business credit. You can find it here: Using 30 Day Net Vendors to Build Your Business Credit Score

Next, Business Credit Monitoring Companies

business credit builder

When building your business credit score, you’ll need to see what’s happening with your business credit report. In order to do this, you need to know which companies can help you monitor business credit. There are more than a handful of reputable brands who do just that.  

First, which business credit bureaus are used by lenders? The three top credit bureaus for business loans and lines of credit are Dun & Bradstreet (D&B), Experian Business, and Equifax Business. A couple of the following companies monitor reports from all three bureaus while the rest monitor reports from just one or two. 

1. Dun & Bradstreet’s CreditSignal™ 

D&B is the top business credit bureau. Most reputable lenders will use your D&B report to determine your company’s creditworthiness. Naturally, you can monitor your D&B credit score through D&B. While you can not monitor Experian nor Equifax reports and scores with these tools, I always recommend that businesses create an account and claim their business (once a company is business credit-ready, of course). 

Recommended: Dun and Bradstreet: How to Get a DUNS Number

2. Experian Business

Experian is another credit bureau that is dedicated to personal and business credit. Businesses can monitor their reports using Experian’s online business tools. This is pretty cut and dry. 

3. Equifax Business

Like Experian, Equifax is a credit bureau that monitors both personal and business credit. And, you can claim your business listing online when you want to monitor your business credit report. 

(Note: Transunion does not currently offer business credit monitoring.)

Nav is the tool I recommend my clients use for business credit monitoring. With their free tools, you can monitor business credit from all three credit bureaus: D&B, Experian, and Equifax. The company has both paid and free plans for all business credit monitoring needs. 

Recommended: Nav Review: A Company That Helps Build Your Business Credit 

5. Credit Suite

While the platform is not as robust as Nav, Credit Suite has a credit monitoring plan that costs $24 per month and empowers companies to monitor reports from all three business credit bureaus. The monitoring software is also available as a white label product for resellers. 

Read more about Credit Suite’s full offer below. 

Finally, Business Credit Coaching & Service Companies

build business credit in 30 days

Now, you’re ready for the meat and potatoes. These companies actually work one-on-one with you to establish and build your business credit score so that you can obtain the large lines of credit that your business needs. 

By the end of the programs, they might teach you how to build credit so that you can use the right tools and tactics to successfully apply for large business lines of credit. Others will help you secure funding through their partners. 

→ Recommended: Read This Before You Hire a Business Credit Coach

1. Credit Suite 

Yes, Credit Suite was already mentioned above as a credit monitoring company. But, monitoring is not their core service. In fact, Credit suite is a “consultation service” and software system designed to help businesses build credit. The system is also offered as a white label option for software sellers. 

For more information about costs and to read a full overview, read: Expert Weighs in on Credit Suite Reviews: Is the Service Worthwhile?  

2. Fund & Grow 

Fund & Grow is a consulting program designed to help small business owners, startups, real estate agents, and self-employed individuals build credit. The program seems to be very well organized and claims to help businesses with every step of the process from boosting their credit score through applying for a loan. They do charge origination fees.  

Recommended: Fund & Grow Facts: An Honest Business Funding Services Review

3. LenCred

LenCred is more of a funding acquisition partner than a business credit builder, but they offer financial reviews, education, and access to startup loans and working capital. All of their advisors are “FICO-certified.”  

Recommended: This is the Truth About LenCred’s Small Business Financing

4. Business Credit Builders

The first offer from Business Credit Builders is a free business credit building audio, which they value at $97. Their program teaches companies to be credit ready, separate personal and business credit, and build business credit reports and scores. The goal is to help you get lines of credit and cash loans. 

5. Midwest Corporate Credit

Midwest Corporate Credit caters to new businesses, established companies, and real estate investors. Their program helps clients get the funding they need and teaches them how to best use the capital to their advantage. In all, they’ve helped businesses secure over $250M in small business loans and lines of credit. 

6. Business Credit Workshop (Me)

Business Credit Workshop started as an in-person workshop to teach business owners how to build business credit the right way. Materials cover a comprehensive, seven-step process for establishing your business, getting business credit-ready, net 30 vendors, how to set up banking accounts, and applying for credit. Learn how to build business credit the right way. 

In our content and via our workshop and coaching, we share the answers to the following questions and more: 

  • How can I improve my business credit score? 
  • What credit score do I need to get a business loan? 
  • What is a bad business credit score? 
  • Can I build business credit without a DUNS number? 
  • How much should it cost to run a D&B report? 

If you’re not sure, find out if you should hire a business credit consultant.

→ And, if you’re ready to learn precisely how to obtain $100K in business credit in 30 days with NO origination fees, join Business Credit Workshop.

A Complete Thryv Review: Manage Online Business Listings +More

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Thryv Review

When you set up your business to build business credit, one of the early steps is to make sure your company looks legit to banks and credit unions that you might turn to for funding. Online business listings help people (namely lenders) find your company on the web. There are several ways to list your business including manually, via a directory submission service, or through an automated platform. One of my clients uses a platform called Thryv and highly recommends it.

After talking to them about the benefits, I wanted to know more. When I researched the platform, I found that it can help with much more than just business listings and I wanted to share everything I learned. 

Here’s what we’ll cover: 

Thryv Platform Overview

Thryv reviews bbb

Formally a holding company, Thryv Inc. delivers marketing automation software for small businesses through its subsidiaries. Thryv recently acquired Yp.com, which was a leader in the business directory industry, and integrated their offers. Now, let’s dive deeper to find out what this means for you. 

What is Thryv?

Competing with brands like Hubspot, Salesforce, and Keap, Thryv brands their service as a customer relationship management (CRM) platform or an all-in-one business dashboard. The company caters predominantly to small, local service businesses. 

What does a CRM software do? A CRM gives companies a dashboard to store identifiable information and communications with leads and customers. In recent years, CRM platforms have evolved to offer research, marketing, and communication tools in one dashboard. 

You can use the Thryv platform to collect leads, communicate with customers, schedule appointments, process transactions, store documents, and more.

Who owns Thryv?

The tools are designed for B2B and B2C service businesses like accountants, mechanics, landscapers, and more. Recently, Thryv announced a HIPAA-compliance add-on so that it can securely be used by healthcare practitioners. 

During my demo, I learned that Thryv offers custom websites or standalone widgets that you can add to an existing website. These tools help with lead collection and marketing. They also allow you to offer a client portal so that your customers can manage their communication and payments online from your company website. 

Next, they offer to submit your website to 60+ directories, which is what piqued my interest in the first place. Uniform business listings help your brand to become visible online, your website to get picked up by search engines, and are an essential part of getting your company “business credit-ready.” Manual submission to this many directories can otherwise take hours of your time.  

Thryv login

The new payment system is powered by Plaid and costs 2.9% +30¢ per transaction. Payments can also be integrated with other payment systems like Stripe and Quickbooks through Zapier.

Furthermore, the platform has built-in email marketing sequences and follow-up communications templates that you can send to your leads and customers from inside the dashboard. You can use this feature to qualify and nurture leads, setup repeat appointments, automate invoicing, and request reviews. 

What can you accomplish with Thryv?

You can also use Thryv to schedule and post on social media. Connect your LinkedIn, Instagram, Facebook, and Twitter accounts for easy content sharing and communication without logging into the platforms in multiple windows. And, if you’re not sure what to share, you can pull content from the platform’s pre-written posts, which are updated weekly with new content from the web.   

Probably my favorite feature of the platform, which is not offered with most online review platforms, is the ability to hide live customer reviews for up to seven days. If you receive a poor review, this feature allows you some time to make things right with an unsatisfied customer and get the review updated before it is made public. 

Finally, Thryv has a reseller platform for anyone interested in promoting the software. More information about the program can be found by emailing lynn.daley at thryv dot com. And, affiliate program information can be found here.

How Much Does Thryv Cost? 

Thryv platform use, depending on which features you opt-in to, can cost from $199 to $499 per month. The directory submission service is part of the platform’s recent buyout of Yp.com and is not yet offered as a standalone service. You’ll have to work with a representative and create a custom package to leverage this feature. 

Thryv Customer Support Evaluation

When reaching out for a Thryv platform demo, I tried to make the process slightly difficult for the sales and support team… to get a feel for how well they work together to solve problems. When you choose business software it’s a tremendous decision. It takes up a sizable portion of your budget, plus it’s a serious pain to switch from one platform to another once you’re already established. 

Thryv’s support team contacted me within 24 hours of requesting more information (which I did on a weekend) and was quick to set me up with an after-hours sales demo. I rescheduled without any problems so that nobody actually had to work late. But, the fact that they were willing to do what they needed to meet my needs impressed me. 

While I was in the video conference, I tried to ask a few questions that I was sure the sales rep wouldn’t have the answer to. I succeeded and stumped him a couple of times. But, that didn’t mean that I didn’t get answers. After the online presentation ended, the sales rep emailed me with a full list of answers, including contact information for the right people to contact with further questions in each category. 

From my experience, I give Thryv customer care five stars. But, not everyone agrees. 

Thryv reviews Reddit

According to some users, it sounds like Thryv might have a tendency to reach out too much or provide too many updates. But, I would take this with a grain of salt — too much support is always better than not enough. 

Thryv Competitor Rundown

For the purpose of educating readers, I want to compare some of Thryv’s top CRM competitors. After that, let’s look at directory submission/business listing services, since that’s why we’re here in the first place. 

Thryv vs Hubspot vs Salesforce vs Keap

If you’re interested in an all-in-one business dashboard to power your operations, here are the top competitors.

Thryv Competitors

First, I want to point out that I don’t like the fact that Thryv’s pricing isn’t transparent. You will need to get in touch with a Thryv representative to build a custom package. Still, their pricing is competitive with other CRMs. Furthermore, their packages are more suited to small, local businesses, including those with multiple locations. 

You might pay less for a starter package with another competitor. But, you may later find that the feature options are too robust with Salesforcee and Hubspot while not enough with Keap. For a local small business, Thryv is the platform I would recommend. 

Directory Submission Service Comparison

And, if you’re only here to find the best way to automate your business listings for the purpose of getting business credit-ready, this list is for you. 

Business listing

If you are only in the market for business listings, Thryv is probably not your most cost-effective option. However, the multiple features their platform offers are worth the price. 

Note that you can also find freelancers or agencies in your area to list your business in multiple directories to help build your online presence, and costs can vary. To find your best option, look up “citation building service” or “directory submission service” and add your city name.

Final Thoughts

When you want to build business credit, you need to get business credit-ready. Part of the processes is to establish your online presence and create business listings in relevant directories. Thryv can automate the process while it offers you a more convenient, end-to-end solution to run your business.   

Thryv stacks up nicely next to other all-in-one business platforms. However, if listings are all you’re concerned with, you might do better to try another service or submit your business manually (depends on your budget). Overall, I do recommend you check out everything Thryv has to offer. And, if you have questions, you can easily get a company rep to show you around with a free demo. 

Now, if you’re interested in learning everything you need to get $100K in business credit in 30 days, join Business Credit Workshop today. 

This is How to Build Business Credit Fast [Step-by-Step Guide]

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How to Build Business Credit

Here on our blog, you’ll find how to get business credit. Furthermore, we’ve shared a ton of articles about various funding options, lender reviews, and other relevant advice. What we haven’t revealed (publicly) is how to build your business properly to obtain credit, which is the core of our mission — the skills that Business Credit Workshop members master. 

A high business credit score can help you increase funding options beyond the limitations of personal credit and even lower insurance rates.  

Now, I’m going to lift the curtain and share the bricks you need to lay (and how to lay them) if you want to build business credit in 30 days. Here’s what’s in store:

I assume you are tempted to skip around, but I recommend you read the entire article. Each section contains little gems of wisdom to not only tell you what to do, but show you how to do it right. 

If you’re ready, let’s go! 

Intro: Business Credit FAQs

Before we explore the steps to take, I want to use this space to quickly answer some of the top questions I hear all the time about building businesss credit. 

Can I use my EIN to apply for credit?

Yes, if you have an EIN assigned by the IRS, you can use it to apply for business credit. 

Is it hard to get a business credit card?

No, it is not hard to get a business credit card, as long as you have a high business credit score. 

Do business credit cards pull personal credit?

Some business credit cards do a soft or hard pull to your personal credit and some do not – the latter is rare.  

Can an LLC have a credit score?

An LLC can have an employer identification number (EIN) and a DUNS number from Dun & Bradstreet. These identification numbers represent entities that can have credit scores separate from personal credit scores. 

Can an LLC get a loan?

Yes, a business entity like an LLC or other corporation can apply for and get a loan. 

Can I open a credit card for my LLC?

Yes, you can open a credit card for your LLC if it has a high business credit score. 

Can I buy a house with business credit or can an LLC buy a house?

Yes, you can use business credit to purchase real estate on behalf of an LLC. 

How long does it take to build business credit?

You can build business credit in as few as 30 days. 

What are the easiest business credit cards to get approved for?

The business credit cards with the lowest credit requirements are typically store cards with net 30 payment terms. 

Can you build business credit with bad personal credit?

Yes, you can build business credit with any personal credit score. However, many lenders require a personal guarantee, some require a hard or soft pull to your personal credit score, and poor personal credit limits your business credit options. 

However, a low personal credit score isn’t a death sentence. Check out this Credit Secrets book review.

Now, how do you build business credit fast? 

5 Steps to Build Business Credit

Since I started teaching owners how to get business credit, I’ve honed the process into a fully-sharpened, seven-step system. And, the first five steps of the proceess relate to business credit building; this is the first time I’ve shared them with non-members. 

Before you get your hands dirty, here’s a quick tip: Business credit is a lot like personal credit — the fundamental rule is that you must pay your debts as agreed to maintain a good score. With that in mind, let’s dive in. 

Step 1: Form Your Business 

1. Form Your Legal Business Entity

In construction, the first steps of building are to prep the site and lay a foundation. Likewise, your business needs a strong foundation: proper entity formation. Here are a few considerations. 

First, your business name should be neutral. If you call your company Legacy Real Estate, your entity will be limited to funding options available to real estate companies. However, a company name like Legacy Management keeps you open to more generic funding options.

On a similar note, your business category should be neutral. Business Management is a safe category for most companies. And, you can always establish multiple brands under one legal entity. 

Next, once you establish your business name, don’t change it. Lenders will want to see proof that your company is dependable and using the same business name over a long period will ensure this. 

Finally, how do you want to establish your business entity? Would you like to hire an attorney to do it for you, use an online service like Legal Zoom, or do so manually through your local Secretary of State? 

Step 2: Get Your Company “Business Credit Ready” 

2. Get "Business Credit Ready"

Think of getting “business credit ready” as adding a rough frame to a structure. Business credit readiness involves several steps.

  1. Establish your physical address (don’t use a P.O. box) – As a rule, a P.O. box doesn’t seem professional in lenders’ eyes. 
  2. Get business insurance if you need it – Forbes lists 13 types of insurance that small businesses might need.  
  3. Obtain the required business licenses – You will need to file your business with your local Secretary of State Office. Some towns require licensing for certain types of businesses. Check with your city or county to see what additional licenses you might need. 
  4. Create an online presence –  At minimum, your business needs a website and branded domain name. The name and address should be the same as what’s listed in your legal business entity records. 
  5. List your business in relevant directories – You’ll want your business listed in relevant directories online and offline directories, including 411. Each of these directories should include the same information about your business (name, address, phone number, etc.). This will help your business appear more trustworthy and legitimate to lenders when you start the application process. 

To accompany the above steps, you will also need a phone number and a business bank account. Here are a couple of tips. 

  • Get a local, physical, landline number. Either call your local phone provider for this or use an online (VOIP) service. 
  • Establish a business checking account that you plan to use long-term. 

See Also: 3 Best Credit Unions for Small Business Banking

When the time comes to apply for credit, you may also need operating agreements and other business documents, so keep every record handy. 

Step 3: Network With Local Banks

3. Network With Local Banks

A network is crucial to success in anything. Buildings require electrical, plumbing, and HVAC systems while business credit involves a network of real people – bankers and other financial professionals. 

If you can, attend local Chamber of Commerce events. If you’re not able to, network online with locals that you can build rapport with. Through authentic relationships, these people can teach you to about the underwriting processes for establishing major lines of business credit.  

Note: When you drive around in your community, keep track of all of the small community banks and credit unions in you see. Then, research what financing programs they offer. 

We recommend a spreadsheet of all business credit cards, business lines of credit, business loans, and other offers for each bank near you so that you can see them side-by-side before you make a decision. Furthermore, you’ll want to know if these banks lend their own money. If they don’t, find out who their underwriter is so you can get a feel for what the requirements will be. 

Step 4: Setup Business Credit Profiles

4. Setup Business Credit Profiles

Setting up business credit profiles is like installing insulation in a building. This is the padding within the walls of your business that will make it so that banks are willing to lend to you. 

Your business will have a few business credit scores. The most important is your PAYDEX score from Dun & Bradstreet (D&B). Since businesses don’t automatically have a D&B profile, you will need to set yours up and establish a DUNS number. 

You can expedite the process of obtaining a DUNS number for $49 so that you don’t have to wait a month to receive it. 

See Also: Everything You Need to Know About a DUNS Number

You will also want to monitor your Equifax and Experian business credit scores, which can be done for free here: 

If you do see inaccuracies, now is the time to fix them. 

I recommend you monitor your business credit with Nav (essentially the CreditKarma for businesses). There are a ton of business credit monitoring services that cost anywhere from $4 to $30 per month. Stay away from them. You can get everything you need for free through Nav. 

The only time I recommend paying for full credit reports and scores is if something doesn’t look right and you need to dispute or correct an item on your report. 

Step 5: Build Small Trade Lines of Credit 

5. Build Small Trade Lines of Credit

To make a building habitable, you need to add drywall, flooring, siding, and roofing. And, in business credit, your small tradelines of credit are what actually seal the deal. Once you have established the proper number of tradelines and those tradelines have reported to the credit bureaus, you will have a perfect PAYDEX score. 

See Also:  30 Day Net Vendors That Report to D&B

I’ll say it one more time: the key to a high business credit score is that the trade lines you establish report your on-time payments to business credit bureaus, including D&B. You can also use gas cards and store cards. Just be sure to do your research and make sure your payments will be reported. 

While you might be able to qualify for some revolving lines of credit at this point, I recommend you always start with tradelines. Crawl before you walk if you want to remain stable. 

Final Takeaway

Establishing and building business credit is crucial for companies who want more freedom in the way they fund their operations. Once you’ve completed the steps above, all you need to do is optimize your credit score and apply for funding, which is like adding trim, fixtures, mirrors, and windows then taking a final walk through the home you’ve built. 

To dive deeper into the full, seven-step process, read exclusive business tips, learn exactly how to setup your credit profiles the right way, and ultimately learn how to obtain $100K in business credit in 30 days, sign up for Business Credit Workshop.

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