In 2017, the economy is steady, lenders are active, and the opportunities to secure funding for your business are as strong as they’ve been in years. But there’s a catch: your business must be credit-worthy.
Establishing strong business credit is the key to unlocking capital without risking your personal finances. Whether you’re seeking lines of credit, business loans, or vendor financing, your business credit profile is what lenders and suppliers are reviewing first. So, how do you build it the right way?
1. Start With the Right Business Structure
To build credit, your business must be a legal entity, such as an LLC or corporation. Sole proprietorships and DBAs won’t cut it—you need a structure that separates your business and personal finances.
Once you’ve incorporated, be sure to:
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Obtain your EIN (Employer Identification Number) from the IRS
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Register with your Secretary of State
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Set up a dedicated business checking account
2. Establish Your Business Identity
Lenders and bureaus want to see that your business is real and active. You’ll need:
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A dedicated business phone number and address
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A professional website and domain-based email address
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A listing in the 411 directory
These might seem small, but in 2017, these details build lender trust and improve your credibility across financial platforms.
3. Open Vendor Accounts That Report to Business Bureaus
The fastest way to begin building a business credit file is by opening Net-30 accounts with vendors who report to the bureaus, such as:
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Uline
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Grainger
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Quill
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Summa Office Supplies
Order supplies, pay the invoice early or on time, and those payments get reported to Dun & Bradstreet (D&B), Equifax, or Experian Business—all crucial to building your PAYDEX score and business credit profile.
4. Get Your D-U-N-S® Number
To build credit with Dun & Bradstreet, your business must be listed with a D-U-N-S Number. It’s free to obtain, and in 2017, it remains the foundation of your business’s credit identity.
This number is what lenders use to check your D&B PAYDEX score, which ranges from 0–100 (you want 80+).
5. Open a Business Credit Card
Once you’ve got some vendor accounts reporting, it’s time to apply for a business credit card. Choose one that reports to business bureaus, not personal credit. Popular options in 2017 include:
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Capital One Spark
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Chase Ink Business
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American Express OPEN cards
Make small purchases, pay in full, and keep utilization low—just like with personal credit.
6. Monitor Your Business Credit Reports
In 2017, many business owners overlook this step. But monitoring your credit helps you:
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Catch errors or fraudulent accounts
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See when new tradelines are reported
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Track your PAYDEX and credit scores
Use tools like Nav.com, CreditSignal from Dun & Bradstreet, or direct monitoring through the bureaus.
7. Maintain Good Payment History
Your business credit score is largely based on one thing: payment history. In fact, your PAYDEX score from D&B is 100% based on how fast you pay your bills. Early or on-time payments are essential.
In 2017, underwriting models are less data-driven than they will be in the future, so lenders put heavy weight on:
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Vendor and trade references
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Years in business
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Revenue and cash flow
Establishing good habits now sets you up for more aggressive funding in 12–18 months.
Final Thought: It’s a Long Game
Building business credit in 2017 is about playing the long game. You won’t go from zero to $100K in funding overnight—but by establishing a strong business identity, opening reporting tradelines, and paying bills early, you’ll be positioned to access larger lines of credit, lower rates, and better financing options without personal guarantees.
Take action now—by 2018, your business could be fully credit-worthy and positioned for serious growth.