Tips to Establish Business Credit

Tips to Establish Business Credit

Often, small business finance complicates personal investment and credit with business expansion and purchases. If you take the time to establish a business credit score, you take the first step toward separating your business and personal finances. Even if you have a sole proprietorship or partnership.

Importance of Business Credit

Business credit is a critical financial tool for your business. It can be used to help you obtain loans or another financing. Additionally, it helps you build relationships with vendors and other B2B sellers. Business credit is a valuable tool for negotiating when you have price/service discussions with other businesses. It is an indicator of how healthy and reliable your company is when it comes to finances. If you don’t have business credit, you are less likely to be able to obtain loans, get credit cards, build vendor relationships, or be successful as a small business.

In this blog, we’re going to give you 8 tips to help you establish business credit. But first, we’ll explain the 5 benefits of having good business credit.

5 Benefits of Good Business Credit

• Easier to qualify for lower interest rates 

• Vendors won’t require pre-payment or even a down payment in many cases 

• Suppliers/lenders offer better terms 

• Separates business from personal finances 

• Business will be financially stable  

8 Tips for Building Business Credit

As you can see, there are lots of benefits of having good business credit- but how do you do it? Following, we will give you 8 tips to build your business credit.

• Establish your business 

• Register with your Secretary of State 

• Obtain your EIN 

• Open a business account at your bank 

• Continue building relationships with vendors 

• Use a business credit card 

• Make payments early and often 

• Focus on your credit utilization  

Maintaining Business Credit

Once you establish business credit, you must maintain it. Two of the best ways to do this are to pay bills early or on time and establish a good relationship with your credit card company.

However, you must also practice good financial habits. Such as saving money, paying bills/taxes on time, making informed financial decisions, and establishing good relationships with suppliers and other businesses. While these may not have a direct effect on your credit score, they do help build the big picture.


To run a financially viable, healthy business, you need a business credit score. It proves to lenders and others that your business is financially healthy and able to make important payments. If you want to know more about establishing and maintaining your business credit score, contact Atlas Capital Solutions. We will be happy to help.