How to Build a Business Credit File
Building a business credit file can help your business obtain funding from creditors in the future. By building a business credit profile, you can keep your personal credit separate from that of your business. There are three major bureaus that report the creditworthiness of businesses: Dun & Bradstreet, Experian Business, and Equifax Business. Once your credit file is with Dun & Bradstreet, the information will also flow to the latter two bureaus.
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Instructions
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Obtain an EIN (Employer Identification Number) for your business. You can immediately obtain an EIN by visiting the IRS (Internal Revenue Service) website. A link to the IRS online EIN application is located in the "Resources" section of this article. You can also apply for an EIN by completing form SS-4 and mailing it to the IRS. Mailing in the form will require a waiting process before your EIN to be assigned.
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Incorporate your business within your state. The incorporation application is generally done through the Secretary of State's office for your state. The incorporation process and the the laws of incorporation will vary from state to state. To get the specific process and laws for your state, see the link that is located in the "Resources" section of this article.
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Visit the Dun & Bradstreet "Credit Center." A link for the credit center is located in the "Resources" section of this article.
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Click on the option to "Establish My Business Credit." Click on the "Buy Now" link to complete the request the establishment of your business credit file. The fee is $229.00.
During the creation of the file you will be assigned a Dun & Bradstreet DUNS (Data Universal Numbering System) number. The DUNS number is connected to your business credit profile much like your social security number is connected to your personal credit profile. It can take up to 30 days for you to receive your DUNS.
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Prepare financial statements for your business and create a professional business plan.
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Start applying for business credit to build your credit profile. To apply for business credit, you will have to provide your DUNS number to the creditor. Creditors may also ask to see your financial statements and business plan.
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Request a copy of your business credit report on a regular basis from Dun & Bradstreet, Experian Business, and Equifax Business to ensure there is no incorrect information on your report.
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References
Resources
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