The 5 Things You Need Before Applying for Business Credit
Building business credit can be one of the smartest moves you make as an entrepreneur. It helps you separate personal and business finances, access funding, and unlock better terms with vendors, lenders, and suppliers.
But here’s the part most people miss:
You need to set the foundation first.
If you apply for business credit before your business is truly “credit ready,” you’re more likely to get denied, or worse, end up relying on your personal credit for everything.
So before you fill out that application, make sure you’ve got these five things in place.
1. A Legal Business Structure
First things first: you need an official business entity. Sole proprietorships may be simple, but they don’t separate your personal credit from your business credit.
Best setup:
- LLC or Corporation (C-Corp or S-Corp)
- Registered with your state government
- Consistent legal name across all documents
Why it matters:
Credit bureaus won’t create a business credit file unless your business is properly registered and recognized as a separate entity.
2. An EIN (Employer Identification Number)
Think of your EIN as your business’s Social Security Number. It’s issued by the IRS and is required for almost all business credit applications.
Apply free at irs.gov
Why it matters:
Lenders and vendors will use this number to check your business credit file, and your EIN shows that you’re operating officially.
3. A Business Bank Account
Once you’ve got an EIN, open a business checking account in your business name.
This is not optional. It’s critical.
Why it matters:
Lenders will often review your bank account history, deposits, and balances before issuing credit. Also, having a separate account shows you’re serious and organized.
Bonus: Keeping personal and business money separate also helps you avoid tax headaches and protects your liability structure.
4. A Business Phone Number, Address, and Website
Even if you’re a one-person business working from home, you need professional contact details that match what you use on applications.
- Set up a dedicated business phone number (even if it’s just a second line or VoIP number)
- Use a business email address (no Gmail or Yahoo if possible)
- Create a basic website and register a domain
- Use a consistent business address across all platforms
Why it matters:
Many lenders and bureaus will cross-check this info against public databases. Inconsistencies can flag your application or prevent your file from being created.
5. Your Business Listed With the Right Agencies
To build credit, your business needs to be visible to the bureaus.
Start by:
- Registering with Dun & Bradstreet and getting your D-U-N-S number
- Verifying your business with Experian Business and Equifax Business
- Making sure your business info is correct on public databases like the Secretary of State, Google Business, and 411 directories
Why it matters:
Vendors and lenders often report to different business bureaus. If you’re not listed, your good payment history might not show up anywhere.
Final Thought
Business credit can give you freedom, leverage, and funding, but only if your foundation is solid.
Take the time to get these five essentials in place before you apply. That way, when you do go after vendor accounts, business credit cards, or lines of credit, you’ll look like a real, established business—not a risky startup.
Need help getting your personal credit in shape while you build your business profile?
At CreditNerds.com, we help entrepreneurs clean up their credit reports with no upfront fees. Schedule your free consultation here!
