How to Build and Use Business Credit to Fund Your Growth

Many small businesses, especially those outside major cities or owned by underrepresented groups, struggle to access capital. When banks and investors overlook them, business owners often turn to personal credit cards or high-interest loans to stay afloat. 

This is known as the small business funding gap. One in four small businesses report they can't get the financing they need, even when they're ready to grow. For amounts below $5 million, the gap is even wider. That's where business credit becomes a powerful tool.

Let's discuss how to build business credit and use it to move your business forward.

Key Takeaways

• Business credit helps you grow without putting your personal credit at risk.
• The first step is setting up your business properly with an EIN and bank account.
• Work with vendors and lenders that report to business credit bureaus.
• A strong credit profile gives you access to better funding and lower rates.
• Fund&Grow helps you build credit and secure up to $250,000 in 0% interest funding.

What is Business Credit?

Business credit is a record of how your company manages money and pays its debts. Just like personal credit, it shows lenders, suppliers, and other partners how reliable your business is when it comes to handling finances.

Good business credit increases your chances of qualifying for higher funding amounts, getting better repayment terms, and lowering your insurance rates. It also makes it easier to work with vendors and lease equipment without needing a personal guarantee.

When your business has its own credit profile, you can keep your personal finances separate. This protects your personal credit score and gives your business room to grow on its own. Lenders and investors are more likely to trust a company with a solid credit history.

Steps to Build Strong Business Credit

Building business credit doesn't happen overnight, but with the right steps, you can start seeing results in just a few months. Here's how to build a strong business credit:

1. Register Your Business Properly

Start by choosing a legal structure like an LLC or corporation. This makes your business a separate legal entity and is the foundation for building business credit.

2. Get an Employer Identification Number (EIN)

Think of an EIN as a Social Security number for your business. You'll need it to open a business bank account and file taxes.

3. Open a Business Bank Account

Use this account for all business transactions. Keeping your business and personal finances separate is key to building a credible financial history.

4. Set Up a Business Address and Phone Number

Even if you run your business from home, use a professional address and a dedicated phone line. This builds legitimacy when lenders and credit agencies review your application.

5. Get Listed with Business Credit Bureaus

Apply for a D-U-N-S number through Dun & Bradstreet. Make sure your business is also registered with Experian and Equifax Business.

6. Work with Vendors Who Report Payments

Start with suppliers that offer net 30 terms and report to credit bureaus. Pay your bills early or on time to start building a positive history.

7. Apply for a Business Credit Card

Choose a card in your business name and use it for regular expenses. Pay off the balance in full each month to avoid interest and strengthen your credit profile.

8. Monitor Your Credit Reports

Track your progress and check for errors. Catching mistakes early can protect your score and help you stay on the right path.

How to Use Business Credit to Fund Growth

Once your business has solid credit, you gain access to tools that make growth easier and more sustainable. You no longer have to depend on personal savings or high-interest loans to move your business forward.

1. Access Larger Credit Limits

With strong business credit, lenders are more willing to offer higher credit limits. This gives you more room to cover big expenses like equipment, inventory, or marketing without draining your cash flow.

2. Get Better Terms from Lenders and Vendors

Good credit helps you qualify for lower interest rates and longer repayment terms. Vendors may also offer better payment plans, giving you more time to pay for supplies and freeing up working capital.

3. Invest in Operations and Expansion

You can use business credit to hire staff, lease office space, upgrade tools, or launch new services. This kind of strategic spending can help you serve more customers and increase revenue without putting pressure on your personal finances.

4. Weather Slow Seasons or Emergencies

Having available credit can help you manage cash flow during slow months or cover unexpected costs, like equipment repairs or supplier delays.

5. Separate Your Finances and Build Business Value

Using credit under your business name builds a clear financial track record that lenders, partners, and buyers trust. It shows your business can stand on its own and adds value if you ever plan to sell or expand.

Common Mistakes to Avoid When Building Business Credit

According to the NSBA, more than 50% of small businesses can't access the funding they need. In many cases, it's not because they're unqualified; it's because they've made early mistakes that weakened their credit profile before it had a chance to grow.

Here are some missteps that hold business owners back:

• Applying for credit before your business is fully set up

Lenders check for legitimacy. If your business address, phone number, and legal structure aren't in place, they may decline your application on-site.

• Only opening accounts that don't report to bureaus

Many new business owners get approved for vendor accounts but never ask if those vendors report payment history. No reporting means no credit growth.

• Treating your business credit like personal credit

Using business credit the same way you'd use a personal card—maxing out limits, carrying balances, or making emotional purchases can lower your score and hurt your funding chances.

• Assuming good personal credit is enough

Even with a perfect personal score, lenders still need to see that your business can stand on its own. Relying too much on personal guarantees holds your business back.

• Not checking your credit until you need it

Business credit reports are separate from personal ones and often go unchecked. Errors, outdated info, or even fraud can sit unnoticed until it's too late.

Let Fund&Grow Help You Build Business Credit the Right Way!

You don't have to navigate your business credit alone. Fund&Grow helps business owners take the right steps from the start and avoid the common mistakes that hold so many people back.

Our team will guide you through setting up your business the right way, building your credit profile, and applying for funding that works for you. We help you access up to $250,000 in 0% interest credit that you can use to grow your team, invest in marketing, or expand your operations without relying on personal credit or high-interest loans.

You don't need to have perfect credit. You don't need to have it all figured out. All you need is a business, a goal, and a team that knows how to get you there.

If you're ready to build real business credit and use it to fund your next stage of growth, we're here to help. Contact us now to get started!

Frequently Asked Questions

What is the fastest way to build business credit?

The fastest way is to structure your business properly (LLC or corporation), get an EIN, open a business bank account, and work with vendors or lenders that report to business credit bureaus. Paying on time and keeping balances low helps your score grow quickly.

How do businesses fund growth?

Businesses fund growth through a mix of options: business credit cards, lines of credit, vendor financing, and loans. Many also use 0% interest funding, like we offer at Fund & Grow, to scale without taking on expensive debt.

How can I get money to grow my business?

You can apply for business credit, work with financial service providers like Fund & Grow, or seek out small business loans. Having a strong credit profile improves your chances of getting approved and securing better terms.

Can you build credit for a business?

Yes. Businesses can build credit separate from the owner's personal credit. It starts with registering your business, opening accounts in your business name, and making consistent, on-time payments to lenders that report to business credit bureaus.

About the Author:

Ari Page is the Founder and CEO of Fund&Grow, helping entrepreneurs, investors, and small business owners secure $50,000–$250,000 in 0% interest business credit. Since 2007, he has grown Fund&Grow into an Inc. 5000 company, securing nearly $2 billion in business credit for thousands of clients. With 6,000+ 4.9-star reviews and an A+ BBB rating, Fund&Grow is a trusted leader in business funding. Ari is also the author of Fund&Grow: Easy & Affordable Ways to Get Money for Your Business and a passionate advocate for mindset, success, and the Law of Attraction. He lives in Spring Hill, FL, inspiring others to grow their businesses and achieve financial freedom.