Strong business credit helps a company move from short-term cash flow to long-term growth. It’s what banks, suppliers, and landlords look at when deciding whether to extend payment terms or approve financing. You build it slowly—through consistent habits that show your business can be trusted to manage money well.
Business credit is a record of how your company manages money. It’s tied to your Employer Identification Number (EIN), not your personal Social Security Number, and shows lenders and vendors that you can handle payments responsibly.
If you haven’t already, start by opening a business checking account. Keeping business and personal finances separate is the foundation of good credit.
1. Use your business account for every business transaction.
Pay vendors, deposit sales, and manage expenses through your business account only. Consistent activity builds a reliable financial record.
2. Pay on time—whenever possible.
Timely payments to suppliers, utilities, and lenders are one of the biggest factors in your credit score. Late payments, even small ones, can hurt your profile.
3. Apply for a business credit card.
Use it for regular business purchases and pay it off in full each month. Responsible use increases your available credit and demonstrates reliability. (Note: Business credit cards can be challenging to get when first starting but no harm applying!)
4. Monitor your credit reports.
Check reports from Dun & Bradstreet, Equifax, and Experian Business. Correct any errors and keep your information up to date, including your business address and EIN.
5. Build relationships with vendors who report payments.
Not all suppliers report to credit bureaus. Working with those who do helps you establish a stronger track record over time.
At Union Kitchen, we help food entrepreneurs move from first product to full-scale manufacturing. Join the Union Kitchen Accelerator to learn how to manage your finances, strengthen your business credit, and build a company that lasts.