How Do I Build Business Credit?

How Do I Build Business Credit?

Building a business from scratch can be one of the hardest financial challenges to go through. So many logistics go into this process that many people can find themselves lost, and one of the most important things that can be forgotten in this process is building business credit. Lower business credit means fewer business opportunities. If you find your business falling into bankruptcy, do not hesitate to ask a Tullahoma bankruptcy lawyer for guidance.


You might be wondering whether business credit is required to start a business. Personal credit helps you gain access to better deals and lower interest rates. Unlike personal credit, business credit is calculated from your employer identification number or Tax ID Number.

In other words, your personal credit history is kept separate from your business credit. Your business credit tends to be built from how you pay bills and how much debt you have. The benefits of business credit are access to business insurance and business transactions.

You may not be allowed to conduct certain business transactions or obtain business insurance without business credit. Since business credit is separate from personal credit, you cannot use personal credit to solve this. Even if you were able to, you could face severe financial trouble if your business fails.


There are several ways to build business credit while starting your business. The first step is to make sure you obtain a tax identification number after establishing your business. Then, you need to apply the credit to your business through one of the following:

  • Service credit
  • Retail credit
  • Vendor credit
  • Supplier credit

You can also do this by using business credit cards that are exclusively used for business purposes. Service credit is for utility services, like the internet, that are associated with your business. Retail credit is for businesses that regularly shop at a specific store for supplies.

Vendor credit applies when your business provides products that need to be bought in the short term. Supplier credit happens when a supplier defers payment from the business for supplies. Many businesses go this route to make time to sell their product and use some of that income to then may the supplies payment.

There are three types of business credit bureaus for checking and managing your business credit. Dun and Bradstreet specializes in business credit and focuses on how businesses work with suppliers and vendors. Experian looks at credit with suppliers and lenders. Equifax works with small businesses and collects information on payments.

Your business credit report can be generated through these business credit bureaus. If you see an error, contact the business credit bureau immediately to have this resolved. Small business owners may have to do this with their personal credit scores.


Bankruptcy can feel like a major loss in your life. Feel free to call us today at Tom Bible Law at (423) 690-7712 for a consultation about what your financial options are. Our legal team of Tennessee bankruptcy attorneys is prepared to help you explore all your options for bankruptcy. We serve clients in the Tennessee cities of Chattanooga and Tullahoma.

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