How to Build Business Credit from Scratch: A Complete 2025 Guide

Starting a business is thrilling, but there’s no denying that the first steps can feel intimidating—especially when building business credit from nothing. If you’ve ever wondered where do I even begin?, you’re in good company. Many business owners, myself included, find the idea of credit building oddly elusive at first. Yet even the biggest companies start somewhere.

Why business credit really matters

Let’s pause and answer the “why.” Business credit isn’t just about getting loans. It can help with negotiating better terms from suppliers, managing cash flow, and even protecting your personal credit score. In 2025, more lenders and partners check business credit reports than ever before. If you ignore this step, growth will be harder—and possibly costlier.

Strong business credit opens doors. Weak credit slams them shut.

Start with the basics—separating yourself from your business

First things first: You need to make your business a legal entity, not just a side project. That means:

• Registering as an LLC, corporation, or partnership
• Getting an EIN (Employer Identification Number) from the IRS
• Setting up a business bank account—yes, even if it’s just for a few dollars at first

This is the foundation. Without it, nothing else really works.

Build your credit profile step by step

Once you’ve formalized your business, building your credit profile is the next phase. A few choices matter a lot more than you’d expect.

Open accounts with suppliers or vendors who will report your payments

Some vendors, especially larger ones, will report your payments to the business credit bureaus. Payments, even for modest purchases like office supplies, matter when reported. At the same time, many don’t automatically share this info—so always check before setting up an account.

Apply for a business credit card or builder card

Options like the Destiny Credit Card or Firstcard Secured Credit Builder Mastercard are designed for newcomers. If you’re cautious about approval, you might also consider a Chime Credit Builder Secured Visa Card. Cards like these, when managed sensibly, will build your profile without risking personal credit ties.

Get listed on business directories and bureaus

Some people skip this, thinking it’s minor. But being listed on Dun & Bradstreet, Experian Business, and Equifax Business makes your company visible to lenders and partners. It helps you appear legitimate—not just another startup in someone’s garage.

Pay on time, every time

I know, you’ve heard this advice a million times. But with business credit, even a single late payment can haunt you for ages. Automated reminders help—and keeping money flowing through your business accounts, even small amounts, supports a positive payment history.

On-time payments are your best business habit.

Consider loans or lines of credit when ready

Many new owners wonder, “Am I ready for real business funding?” Only you can say, but learning about loans to start a business and the process of choosing the best line of credit is a great next step. Even small loans or lines, repaid on time, help to further strengthen your business credit history.

Last thoughts—patience and review

If you’re aiming for perfect results overnight, frustration is pretty much inevitable. Still, steady action works wonders. Check your business credit reports regularly—surprises are never fun, especially when a bank or partner finds a mistake before you do. And yes, sometimes progress feels slow, but it’s real. One year in, you’ll look back and wonder why it seemed so complicated at first.

Start simple. Build step by step. Your future self—and your business—will be glad you did.