Are you well-versed in personal credit but unsure how business credit works? You’re far from alone. Business credit is less standardized and hardly talked about, leaving many wondering how to build it or if they even can. The reality is—any U.S. legal entity with an EIN can establish business credit, and doing so can unlock valuable opportunities from business financing to vendor partnerships.
So, how do you close the gap and start building your company’s business credit? You no longer have to do it alone. Gone are the days of scouring the internet looking for lenders willing to approve your company and report to a business credit reporting agency. Credit-building companies like Lili now make it easy to establish a business tradeline, monitor your business credit, and sharpen your business credit knowledge.
Understanding Business Credit And Why It Matters
Building business credit involves establishing a strong, positive financial track record for your company with the three business credit reporting agencies—Dun & Bradstreet, Experian, and Equifax. Each agency collects data from credit issuers and publishes reports on how businesses manage their credit accounts.
Those reports come into play when third parties like lenders, vendors, or investors are interested in working with a business. Strong reports—showing consistent, on-time payments and responsible credit use—instill confidence and can open doors to opportunities. Weak reports, on the other hand, can deter third parties from moving forward with an offer, or lead to less competitive terms.
Business vs. Personal Credit
Building business credit is very similar to building personal credit. In both cases, you open credit accounts, your creditors report activity to credit reporting agencies, and those agencies publicly evaluate how well you’re managing your credit. Both types of credit also play a major role in enabling access to financing, competitive rates, leases, and other opportunities.
However, business credit accounts are only available to business entities with Employer Identification Numbers (EINs), while personal credit accounts are available to individuals with Social Security Numbers (SSNs). The credit reporting agencies also differ. Personal credit accounts are reported to Experian, Equifax, and TransUnion, while business credit accounts are reported to Experian (Business), Equifax (Business), and Dun & Bradstreet.
How To Get Started
Before you can build business credit, you need to form a legal business entity (an LLC or corporation), get an EIN, open a business bank account, and register a D-U-N-S Number. From there, you can start opening business credit accounts with issuers that report to one or more of the main business credit reporting agencies.
Top Business Credit-Building Companies You Should Know
If you want help fast-tracking the process of building business credit, consider enlisting the help of a business credit-building company. Here are a few examples.
1. Lili BusinessBuild
Lili helps small business owners manage their business banking, accounting, tax preparation, and credit building all in one convenient platform. On the credit-building front, we offer the BusinessBuild Program, created in collaboration with Dun & Bradstreet. Once enrolled, you can open the secured BusinessBuild credit card, which reports to Dun & Bradstreet on a monthly basis.
You won’t need to undergo a personal credit check or provide a personal guarantee to get approved. Instead, you simply set aside a security deposit for the card in your Lili checking account. From there, you use the card for everyday business purchases and pay it off each month to build a positive tradeline. Additionally, the BusinessBuild program offers 24/7 access to your Dun & Bradstreet credit profile, real-time credit alerts, and business credit training.
Key Offerings:
- Business Tradelines: Lili’s BusinessBuild secured credit card is reported to Dun & Bradstreet each month and doesn’t require a personal credit check or personal guarantee.
- Credit Monitoring: Gain 24/7 access to your Dun & Bradstreet credit profile from your Lili account and real-time alerts when your profile or scores change.
- Credit-Building Training: Access training materials designed to help you grow your business credit profile efficiently and effectively.
Cost: $30 per month (add-on to Lili plans)
Welcome promotion: Free for the first month and 40% off for the next three months.
Nav Prime
Nav offers a credit-building platform designed to help small business owners manage both their personal and business credit. The company’s free plan provides access to business credit summaries from the main business credit reporting agencies, while the paid plans (Nav Prime) unlock deeper insights, tradelines, and personalized guidance. Nav Prime also offers plan tiers that include a business checking account and bookkeeping tools. However, the financial add-ons are more limited than Lili’s, lacking features like tax preparation software, savings accounts, and international wire transfers.
Key Offerings:
- Business Tradelines: Establish up to 2 business tradelines through the Nav Prime membership and Nav Prime Card, both of which are reported to the major business credit agencies.
- Credit Monitoring: Get access to business credit scores, alerts, and reports from Dun & Bradstreet, Experian, and Equifax.
- Credit-Building Training: The highest plan tier includes dedicated 1-on-1 support from a business credit coach.
Cost: $39.99 to $74.99 per month
Welcome promotion: None
Credit Suite
Credit Suite is a business credit-building platform that guides users through the process of setting up a business properly so it’s ready to build business credit. From there, it matches business owners with a network of third-party lenders and vendors to help them create tradelines. On the downside, it comes with a large upfront cost, doesn’t include an in-house tradeline, and requires you to pay extra for business credit bureau insights. Competitors, like Lili and Nav, offer more affordable monthly pricing plans with built-in tradelines and business credit monitoring.
Key Offerings:
- Business Tradelines: Get matched with secured and unsecured credit lines, vendor and supplier accounts, and business loans from its network of over 300 partners.
- Business Setup: Get help with the steps required to set your business up for credit building, such as getting an EIN, business name, business bank account, and legal structure.
- Credit-Building Training: Access training on business credit and business credit scores.
Cost: $2,997 single payment, or $497 for 8 months
Welcome promotion: None
Net-30 Vendors
Net-30 vendors are companies that sell goods or services to businesses and offer 30-day payment terms—meaning you have 30 days to pay your invoice. This arrangement functions as a short-term form of interest-free business credit. When vendors report net-30 accounts to one or more of the business credit reporting agencies, your on-time payments can help you build business credit and demonstrate financial reliability.
Key offerings:
- Business Tradelines: Each account can become a tradeline if it’s reported to a business credit reporting agency.
- Financing: You can receive 30 days of interest-free financing when you purchase goods or services, which can help you manage your cash flow.
Comparing Features: Key Criteria When Choosing a Business Credit Builder
Business credit-building platforms can vary greatly from one to the next. When deciding which one is right for you, be sure to consider the following key features:
- Tradeline Availability: Look for programs that include an in-house business tradeline, allowing you to start building business credit right away.
- Credit Monitoring: Credit monitoring enables you track your progress and note changes to your profile. Look for 24/7 access to your credit profile, real-time alerts, and in-depth reporting.
- Personal Credit Impact: If you want to keep business and personal finances separate, choose a program that builds credit solely under your business name and EIN. Avoid those that require personal credit checks or personal guarantees.
- All-In-One Platform: Many platforms focus solely on credit building, leaving you juggling multiple solutions for banking, accounting, and tax preparation. Consider a platform that consolidates all of your financial operations in one place.
- Cost: Compare the costs of platform subscriptions carefully and look for competitive pricing.
- Business Credit Training: Training programs can help you understand how to establish business credit efficiently while avoiding mistakes. Look for programs that offer education via multiple resources.
Keeping these features in mind can lead you to a solid offering that helps your company build business credit at a competitive price.
Business Credit Building Costs, Terms, and Risks
Before you sign up for a business credit-building program, here are the main costs, terms, and risks you should know.
Fees
Credit-building platforms tend to charge a fee for access. It’s often a monthly or annual subscription, but can sometimes be a larger, one-time fee. You may also come across add-on features, where you can opt to pay more to get additional features that aren’t included in the base plan.
Timelines
Building business credit takes time. Once you have active tradelines, it typically takes six months of on-time payments before your scores become available. Most credit builders recommend keeping the services for at least a year to get well established.
Risks of Misreporting
Business credit reporting involves your creditor sending reports to the reporting agencies, and the agencies updating your public credit records. However, mistakes can happen during that process. To catch any discrepancies early, monitor your reports regularly and dispute any inaccuracies promptly.
Consequences of Late Payments
Late or missed payments will hurt your business credit and can affect your ability to qualify for vendor terms, loans, or lines of credit. It’s crucial to stay organized and ensure every payment is made on time or early. Consider setting up automatic payments or monthly payment reminders to ensure timely payments.
How Lili’s BusinessBuild Program Work
Are you interested in Lili’s BusinessBuild Program? Here’s a step-by-step breakdown of how it works:
- Open a Lili Business Account: Sign up for a Lili business account and add the BusinessBuild Program. The add-on is free for the first month, 40% off for the next three months, and then $30 per month after that.
- Get the BusinessBuild Secured Credit Card: Designate the amount you want to use as a security deposit and open your BusinessBuild secured credit card.
- Use Your Card for Business Spending: Make business purchases with your BusinessBuild card and pay off the bill by the due date each month.
- Monitor Your Credit in Real Time: View your Dun & Bradstreet credit profile directly in your Lili dashboard, including six key credit scores (like PAYDEX® and D&B Rating), and receive instant alerts.
- Learn and Improve: Get training materials, a step-by-step ebook, and access to live webinars to understand how credit works and how to optimize your profile over time.
Aside from these steps, stay consistent. Credit growth takes time. Continue using your card, making your payments on time, and tracking your Dun & Bradstreet report.
The Bottom Line
Building business credit is one of the best long-term investments you can make in your company. A solid payment history builds trust with third parties and offers returns in the form of opportunities. While business credit-building companies help to fast-track the process, not all are created equal. You’ll want to look for the one that provides the best overall value for your business.
At Lili, we’re dedicated to helping you streamline and optimize every aspect of your financial operations, from banking and accounting to tax planning to business credit. With the BusinessBuild Program, you can open a secured tradeline, monitor your Dun & Bradstreet profile, and access credit-building tools and education—all from your Lili dashboard. It’s an affordable, all-in-one solution for small business owners ready to take more control of their financial future.
Ready to get started? Add the BusinessBuild Program to your Lili plan today!
FAQ
Read on for quick answers to common questions about building business credit.
