Every small business owner knows the frustration of waiting for opportunities. Waiting for customers, waiting for payments, and most critically, waiting to access the funding needed to grow. Your business credit score often determines whether those funding doors open quickly or stay firmly shut.

Establishing business credit can mean the difference between securing quick cash for emergency equipment repairs or watching operations grind to a halt. It can determine if you’ll get favorable payment terms from suppliers or be stuck paying cash upfront. And when unexpected opportunities arise, good business credit helps you seize them immediately rather than scrambling for financing.

While building excellent business credit takes time, you can lay the groundwork for a stronger credit profile in just 30 days. 

You likely won’t build perfect credit scores overnight, but you can take concrete steps right now to start establishing your business’s creditworthiness. 

Let’s explore practical ways to begin building your business credit this month:

1. Set Up Your Business Structure

While you can build business credit as a sole proprietorship, forming a separate business entity gives you significant advantages. A proper business structure not only protects your personal assets but also makes your company more credible to lenders and suppliers, often leading to better financing terms and opportunities.

The most common choices for small businesses are Limited Liability Companies (LLCs) and corporations. LLCs offer flexibility in management and taxation while providing personal asset protection. Corporations provide the strongest liability protection and can make your business appear more established to potential creditors, though they require more formal record-keeping and administrative work. (Both LLCs and corporations may elect to be taxed as S corporations.)

If you’re not ready to form an LLC or corporation, you can still establish business credit as a sole proprietor by registering a fictitious name, “doing business as” (DBA) name. However, keep in mind that operating as a sole proprietor means your personal and business finances remain legally connected, which could limit your funding options and expose your personal assets to business debts.

Remember: Your business structure forms the foundation for your company’s financial future. While changing it later is possible, starting with the right structure makes building business credit significantly easier.

2. Make Your Business Legit 

Once you’ve established your business entity (or decided to operate as a sole prop), choose your business phone number and address and apply for an Employer Identification Number (EIN). 

A basic business website can establish your presence online, and establishing social media accounts can help you get the word out. 

Read: Nav’s Checklist to Make Your Business Legit

3. Start Your Business Credit Profile

Your business credit profile is a part of your businesses’ reputation, but first, you need to make sure credit bureaus know your business exists. 

Check whether your business is already listed with the major business credit bureaus, either by going to each individual credit bureau or with Nav.

Find out what is reported about your business. If your business doesn’t have at least three active accounts (tradelines) reporting payment history, your next step will be to start establishing them. 

4. Establish Trade Credit with Multiple Suppliers

One of the fastest ways to build business credit is through vendor or supplier relationships that offer “trade credit”. This gives you time to buy now and pay later. 

Vendor accounts, often net-30 accounts because payment is due in 30 days, can help establish your credit history even if you don’t qualify for traditional financing.

Look for suppliers you already use or plan to purchase from regularly. The key is finding vendors that report your payment history to business credit bureaus. Some reliable options include:

• Office supply companies 
• Industrial suppliers
• Shipping services providers
• Business fuel cards
• Technology and equipment vendors

The best part? Many of these vendors don’t check personal credit, making them ideal for new businesses or owners with less-than-perfect personal credit scores. 

Start with one or two accounts, make small regular purchases, and always pay on time. Once you’ve established a good payment history, gradually add more vendor relationships.

Smart strategy: Begin with vendors offering easy approval, then progress to those providing larger credit lines as your business credit profile grows. Just make sure you only open accounts with suppliers you’ll actually use – there’s no benefit to having dormant credit accounts.

Read: Easy Net-30 Vendors That Help Build Business Credit

5. Open a Business Credit Card

A business credit card offers an easy way to separate your business and personal finances, and manage cash flow. And many cards can be used as a credit-building tool as well. Most major card issuers report your payment history to business credit bureaus, helping you establish a credit profile with regular use and on-time payments.

Keep in mind that most business credit card applications will require a personal credit check for approval. It’s standard practice, even for established businesses. If you have good personal credit, you’ll likely qualify for cards with better rewards and lower interest rates. 

If your personal credit needs work, consider:

• Secured business credit cards that require a deposit
• Store credit cards from office supply retailers
• Business charge cards that require payment in full. 

Once your business is approved, make your card work for your credit profile:

• Never miss a payment due date
• Use it regularly for business expenses
• Keep your credit utilization lower than 20 – 30% of your limit
• Pay more than the minimum, ideally the full balance

Business charge cards don’t charge interest but instead require you pay them off in full rather than maintaining a revolving balance. A business charge card like the Nav Prime Card* (available exclusively to Nav Prime users) provides a way to build business credit with frequent use while also avoiding interest.

Using a charge card for your business could be a great step forward for your finances. (Plus, you’ll also get a second business tradeline by simply making your monthly Nav Prime payment!)

6. Pay on Time (or Early)

Payment history is the top factor that makes up credit scores. Paying on time helps build a positive credit history, and late payments can hurt it. 

Business credit reports typically track “Days Beyond Terms” (DBT) – meaning they note not just whether you paid, but how many days before or after the due date you paid. Paying early can give you an edge in building stronger credit scores faster.

Set yourself up for success with these payment practices:

• Schedule automatic payments for at least the minimum due
• Set payment reminders several days before due dates
• Pay vendor invoices before the the deadline

Every on-time payment can help strengthen your credit profile, making it easier to qualify for better financing terms in the future. Building this habit early sets your business up for long-term success.

7. Apply for a Business Line of Credit

Once you’ve established your business credit profile, think about getting a business line of credit. 

Unlike a traditional loan, a line of credit gives you flexible access to funds when you need them, while helping establish your business credit through regular reporting to credit bureaus.

Lines of credit are available through banks and credit unions, as well as lines of credit. 

If the lender reports payment history to business credit, and you pay on time, you can add another positive reference to your business credit bureaus. 

If your business is fairly new, or you don’t have high revenue, you may get approved for a smaller credit line to start. Don’t be discouraged: some lenders will increase your limit after 6-12 months of consistent payment history.

8. Open a Business Bank Account

While a business bank account won’t appear on your business credit reports, it’s an essential step in setting up your business properly. A dedicated business checking account helps establish your business as a professional business operation. 

A separate business bank account isn’t just good practice. It’s often legally required for corporations and LLCs, and can be essential for building credibility with lenders and suppliers.

Many small business financing options require proof of revenues in the form of business bank statements, so the sooner you establish that history, the better. 

If you want to accept credit or debit card payments, you’ll also need a merchant services account.

9. Avoid Frequent Changes to Business Information

Consistency in your business information can be more helpful than you realize when it comes to building business credit. If your company’s basic details—like your address, phone number, or legal name—change often, it may create issues with business credit reporting agencies and lenders. These changes can make your business appear unstable or just make it more complicated for the credit bureaus to track your credit history.

When you establish your business, try to choose a business address and phone number you can maintain for the long term. If you’re starting from home but plan to move to a commercial space later, consider getting a virtual business address or P.O. box that can move with you. (You may still have to provide your home address, but 

Choose your business name carefully too. While rebranding might seem appealing as your company evolves, changing your business name can affect your business credit. 

Credit bureaus might view the new name as a new business, and potentially dilute your credit history. If you need to market your business under a different name, consider using a DBA (doing business as) while maintaining your original legal entity name.

A few important ways to maintain this consistency:

• Keep your business licenses and registrations current. 
• When you check your business credit, make sure details are correct. 
• If you fill out credit applications, be consistent with the information you provide. 

9. Reduce Your Credit Utilization Ratio

Your credit utilization ratio—the percentage of available credit you’re using—can impact your business credit scores, depending on which credit scoring model is being used. 

This ratio compares balances on revolving accounts compared to credit limits. Low balances relative to your credit limits demonstrates responsible credit management and financial stability to lenders.

For credit cards and lines of credit you’ve paid on time for at least 6-12 months, you may be able to request credit limit increases. And don’t think you have to spend all of your available credit. 

10. Monitor Your Business Credit Reports

Again, your business credit reports can be accessed by anyone—from potential lenders to prospective clients—and there’s a good chance you won’t know about it. 

Then there’s the issue of business identity theft, which is a growing problem. 

Regular credit monitoring helps you spot issues early and understand how your credit-building efforts are paying off. Pay attention to credit score trends and if something is incorrect, investigate. 

When you monitor your credit, make sure you’re checking with multiple credit bureaus. Especially with business credit, it’s common for lenders and vendors to report to some bureaus and not to others. 

Consider investing in a business credit monitoring service that tracks multiple bureaus simultaneously.  You’ll often get additional tools and insights to help you build a strong business credit history.

If you discover inaccuracies, you can dispute them, though the process may not be exactly the same as with your personal credit reports. 

Monitoring your business credit tells you what others are seeing about your business. It can help you spot opportunities to build strong credit and alert you early on to problems. 

Manage Your Business Financials Regularly

Strong business credit starts with strong financial management. The top ways to do that:

• Keep your bookkeeping up to date so you know where your money is going. 
• Keep track of cash flow to help make sure you are able to pay your bills on time, and anticipate your business needs. 
• Stay current on taxes. Past due taxes can turn into tax liens that can hurt your business credit. 

Strategies For Special Situations

While this approach applies to a wide range of entrepreneurs, there are situations that deserve some special attention. 

Use a Secured Business Credit Card

If you can’t qualify for a traditional credit card (usually due to bad credit or lack of a personal credit history), a secured credit card may be an option. You’ll need to place a security deposit to reduce the risk for the lender. There are fewer business secured cards than unsecured cards, but they can be a way to start building your business credit history. 

Build Relationships with Financial Institutions

Some banks reward business relationships with better rates or faster approval processes, so consider establishing a relationship with a banker who understands your business’s history and goals. It helps to choose a financial institution that specializes in your type of business in terms of size and/or industry.

Seek Small Loans from Credit Unions

Some credit unions often offer a friendlier path to business credit than traditional banks, especially for smaller or newer businesses. These member-owned institutions often offer lower interest rates, more flexible terms, and a more personalized approach to lending decisions. 

Credit unions may be able to look beyond your credit scores. Start with a small loan (even if you don’t need the funds right away), and use it strategically to build your credit profile. Like with any small business loan, make payments on time or early, to build credit and a relationship. 

Get a Business Loan with a Cosigner or Guarantor

If your business is a startup, or your credit profile is too thin to qualify for traditional financing, you may be able to get approved with a cosigner or guarantor. Whether it’s a business partner or family member with good credit, the cosigner agrees to take responsibility for the loan if your business can’t make the payments,

While that’s less risk for the lender, it’s a lot of risk for your cosigner. Late payments or defaults can damage both your business credit and your cosigner’s personal credit, and you could both end up in trouble with creditors or even the IRS.

FAQs

• Can you really build business credit in one month?

  Building a good business credit score in a month isn’t common or likely. Many accounts will take at least a month to start appearing on your business credit reports, and good credit requires a good payment history over time.  But even if you can’t build business credit fast as you’d like, it’s still worth investing the time to work on your company’s credit.

• How long does it take to build business credit?

  Every business is different, but it’s typical for business owners to build credit over 6-12 months. Even if you accomplish that initial goal in that time frame, you’ll want to continue building credit over time. There are always new goals to achieve.

*DISCLAIMER: Nav Technologies, Inc. is a financial technology company and not a bank. Banking services provided by Blue Ridge Bank, N.A., and Thread Bank, Members FDIC. The Nav Visa® Business Debit Card is issued by Blue Ridge Bank, N.A. or Thread Bank, and the Nav Prime Charge Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa cards are accepted. FDIC insurance is available for your funds on deposit, up to $250,000 through Blue Ridge Bank, N.A. or Thread Bank, Members FDIC. See Cardholder Terms for additional details.