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How to Establish Business Credit for the First Time

By | May 19, 2023

Establishing business credit is crucial for any entrepreneur looking to grow their business. However, if you’re new to the world of entrepreneurship, building credit from scratch can be a daunting task. The good news is that it’s not impossible. In this article, we’ll discuss some practical tips and strategies to help you establish business credit for the first time. By the end of this post, you’ll have a clear understanding of how to get started on the journey towards creating a solid credit history for your business.


Starting a business is a daunting task that requires immense effort, time, and dedication. Establishing a good credit profile for your business is one such vital task that every entrepreneur should take seriously. Building credit for your company can benefit your business in the long run. A strong credit score can open doors to potential investors and help companies secure financing. However, building business credit is not as easy as it might sound, especially for those starting from scratch. In this article, we will discuss how to establish business credit for the first time, from the basics to the critical steps needed to grow credit for your business.

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  1. Understand Business Credit

The first step involves understanding what business credit is and how it works. Business credit is the financial history of your business, similar to the credit history of an individual. It allows potential investors, lenders, and even suppliers to determine the level of potential risk associated with providing your company with financing, products, or services. Business credit is determined based on the financial history of your company, including credit utilization, payment history, and years in business.

  1. Register Your Business

The second step towards building credit involves creating a separate legal entity for your business, such as an LLC. Creating an LLC or other legal entity is a critical step that helps establish your business as a separate entity from you, the person. Creating a legal entity also ensures that you can build a separate credit profile for your company.

  1. Obtain an Employer Identification Number (EIN)

After registering your business, you should obtain a unique identification number assigned to your company by the Internal Revenue Service (IRS) called an Employer Identification Number (EIN). An EIN is necessary to establish your company’s credit profile and also to file business taxes.

  1. Open a Business Bank Account

Opening a business bank account is essential to developing business credit. It is a simple yet vital step that helps keep your personal and company finances separate. By opening a business bank account, you can easily track and organize your financial transactions, leading to a stronger credit profile.

  1. Build Credit with Vendors and Suppliers

Partner with vendors and suppliers who offer credit lines and report to business credit bureaus. Several vendors provide credit to small companies and report all payments to business credit bureaus. By making purchases with a vendor and timely making payments, your business can begin building credit.

  1. Apply for Business Credit Cards

Business credit cards can be beneficial in establishing business credit. Noelle Randall, who has over 60 business credit cards, recommends applying for business credit cards that are specifically designed for business owners. Apply for a few credit cards, and ensure that the credit card provider accurately reports your payments to credit bureaus.

  1. Make Timely Payments

Punctual payments play a crucial role in establishing a strong business credit profile. Late payments can have an adverse effect on your credit score, while timely payments can lead to a better score. Therefore, always make sure to keep payments up-to-date.


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Building strong business credit takes time, dedication, and effort. However, by following these steps, starting and establishing business credit for the first time can be much easier. By understanding business credit, registering your business, obtaining an EIN, opening a bank account, working with vendors, applying for business credit cards, and making timely payments, any small business owner can lay a solid foundation for a strong and reliable credit standing.


  1. Can small business owners obtain business credit?
    Yes, anyone can obtain business credit, including small business owners.

  2. Is business credit only for large corporations like Walmart, Amazon, and Mercedes-Benz?
    No, business credit is not limited to large corporations. Every small business can benefit from establishing a credit profile.

  3. How can we learn more about establishing business credit?
    You can find information about establishing business credit in a full video available on Noelle Randall’s YouTube channel.

  4. How can business credit help businesses?
    Business credit can help companies buy inventory, equipment, and other necessities. It can also help to improve the company’s cash flow.

  5. Is it difficult to establish business credit for the first time?
    Establishing business credit for the first time can be time-consuming but is not very difficult if you follow the necessary steps and work with suitable vendors.

Author: Chris Barber

Chris Barber Media specializes in providing wealth creation strategies, motivation, and success mindset principles that produce financial freedom. Free training here if you are serious about a lifestyle of freedom. COMPENSATION DISCLOSURE: There are affiliate links on this website, meaning that, at no additional cost to you, the owner of this site will receive compensation if you purchase any product or service recommended through these links.