Your business credit score is more than just a number—it’s a key that can unlock better financing options, lower insurance premiums, and stronger supplier relationships. Whether you’re just starting out or looking to expand, a healthy business credit profile can give your company a significant advantage.
If your score isn’t quite where you want it to be, don’t worry. Here are seven proven ways to improve your business credit score and set your company up for long-term success:
1. Establish Your Business Credit ProfileBefore you can improve your score, you need to make sure it exists.
Action Steps:
- Register your business as a legal entity (LLC, S-Corp, etc.).
- Get an Employer Identification Number (EIN) from the IRS.
- Open a business bank account in your company’s name.
- Apply for a D-U-N-S Number from Dun & Bradstreet (a major business credit bureau).
These foundational steps help credit bureaus recognize your business as a separate, creditworthy entity.
2. Pay Your Bills On Time (or Early)This is the single most important factor in your business credit score.
Why it matters: Late payments damage your score. On-time (or early) payments can improve it, especially with vendors that report to credit bureaus.
Tip: Set up automatic payments or calendar reminders to avoid missed due dates.
3. Work With Vendors That Report to Credit BureausNot all vendors and suppliers report your payments. Make sure the ones you work with do.
What to do:
- Ask suppliers if they report to bureaus like Dun & Bradstreet, Experian Business, or Equifax Business.
- Try to establish trade credit lines (Net-30, Net-60 accounts) with these vendors.
Over time, positive payment history will help raise your score.
4. Monitor Your Business Credit Reports RegularlyErrors and outdated information can drag your score down.
Steps to take:
- Request and review your business credit reports from Dun & Bradstreet, Experian, and Equifax.
- Dispute any inaccuracies promptly.
Bonus: Monitoring your reports also protects you from fraud or identity theft.
5. Keep Your Credit Utilization LowJust like with personal credit, maxing out your business lines can hurt your score.
Best practice: Aim to use less than 30% of your available credit. For example, if you have a $10,000 business credit line, try not to carry a balance higher than $3,000.
Tip: If your usage is high, ask for a credit line increase to improve your utilization ratio.
6. Avoid Frequent Credit ApplicationsEvery time you apply for credit, it can trigger a “hard inquiry” on your report, which may lower your score.
Advice: Only apply for new business credit when necessary. Multiple applications in a short time may be seen as a sign of financial distress.
7. Build a Mix of Credit AccountsLenders like to see that your business can handle different types of credit responsibly.
Examples include:
- Business credit cards
- Lines of credit
- Equipment financing
- Vendor or supplier accounts
Having a variety of accounts, all in good standing, can strengthen your profile.
Final ThoughtsImproving your business credit score won’t happen overnight, but consistent, smart financial habits will pay off over time. Think of it as an investment in your company’s future—one that can open doors to funding, partnerships, and growth opportunities.
Start by checking your credit report, setting payment reminders, and working with vendors who report to the bureaus. Bit by bit, you’ll build a credit profile that reflects the true strength and potential of your business.