Part 2: From Zero to Fundable: The Step-by-Step Blueprint to Build Strong Business Credit

Learn exactly how to build business credit from scratch — even if you’re just starting out. These 7 proven steps will make lenders trust your company.

Important Note: This post is part of a series called Credit Power Series. 

Introduction

Every business owner dreams of getting approved for loans, grants, or lines of credit — but few understand what it takes to become truly fundable.
Fortunately, building business credit isn’t complicated — it’s a process.
Whether you’re running a startup, a side hustle, or a full-time company, you can follow this blueprint to go from zero to fundable in months, not years.

Step 1: Form a Legal Business Entity

Start by forming an LLC or Corporation. This legally separates you from your business, creating a distinct financial identity.

 Avoid operating solely under your name as a sole proprietor; it limits your ability to build independent credit.

Step 2: Get an EIN

Apply for a free Employer Identification Number (EIN) at irs.gov.
This is your business’s equivalent of a Social Security Number and is required for taxes, bank accounts, and credit profiles.

Step 3: Open a Business Bank Account

Banks and lenders will check your account history.
Keep personal and business funds separate — and always use your EIN when opening your business account.
Most lenders want to see 90 days of consistent transactions before considering you for funding.

Step 4: Get a D-U-N-S Number

Register at Dun & Bradstreet to get your D-U-N-S Number — a unique nine-digit identifier that starts your business credit file.
Vendors and lenders use this to report payment history.

Step 5: Establish Vendor Credit

Start small with Net-30 vendors who report to credit bureaus (Uline, Quill, Grainger).
Buy office supplies, pay on time, and build your trade lines.
After 3–6 months of consistent on-time payments, you’ll have the foundation of a strong business credit profile.

Step 6: Pay Everything On Time (or Early)

Your PAYDEX score — the business credit equivalent of a FICO score — depends heavily on your payment habits.
Pay early to score above 80 and impress lenders.

Step 7: Monitor Your Progress

Use Nav.com or CreditSafe to monitor your business credit reports and get real-time updates.
Catch errors early, and celebrate small wins like increased limits or better trade terms.

Takeaway

Building business credit is about consistency.
Treat your business like a trusted borrower, and soon enough, lenders and suppliers will treat it like one too.

Important Note: This post is part of a series called Credit Power Series. 

Read Part 1 here: Personal vs. Business Credit: The Hidden Secret Every Entrepreneur Must Know

Read part 3 here: Business Credit Loans: How to Get Approved and Fund Your Company Without Using Personal Credit

Read part 4 here: Personal Credit Loans: The Fastest Way to Boost Your Credit and Borrow Smarter

Read part 5 here: 7 Proven Steps to Get Approved for Any Loan — Even If You’ve Been Denied Before

At Money Saving Cart, we believe in building with purpose. When life gets challenging, you don’t fold—you pray, you rise, and you create something meaningful.

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— Danel Homméus AKA DaHo
Writer | Founder | Consultant | Entrepreneur | Philanthropist