You may be one of those lucky businesses that never needs funding. But even if you never borrow a dime, having good credit needs to be on your business to-do list.

Read why good business credit matters. Then check out our tips for building it up.

Customers trust it
Clients and customers are selective when they choose who to do business with. Tip their decision in your favor with your strong credit rating.

Suppliers respect it
Everyone wants to get paid ASAP, but you can often negotiate longer terms—from 30 days to 45 days or longer—when your track record is trustworthy.

Businesses depend on it
Some suppliers and companies may offer credit without a credit history. But many won’t. So take advantage of those that do to build your rating.

Credit cards leverage it
Credit card rates vary wildly, but the formula is pretty straightforward: a strong business credit score can help you get a better APR.

Landlords live by it
A strong credit rating can help you negotiate better terms when your lease is up, or when you’re looking for a new space.

Employees want it
While most prospective employees may not check business credit ratings, some do—and your favorite candidate may go with the employer they feel will be able to pay them on time.

Lessors love it
Whatever you’re leasing—equipment, vehicles, retail space—with a solid credit rating, you have more bargaining power.

Cash flow affects it
A healthy cash flow can leave you with more options. Higher accounts receivable and lower accounts payable are indicators of healthy cash flow, which you can leverage when shopping for credit.

Business credit is protected by it
When you separate your personal and business accounts, you reduce personal financial impacts to your business credit.

Lenders consider it
The higher your business credit score, the easier it will be to negotiate interest rates, terms, and loan amounts. In fact, with a strong rating, lenders compete to fund you.

Tips to raise your score

Take a number

Apply for a tax ID number (EIN) with the IRS (don’t use your social security number for business).

Bank locally

Open a business account with your local bank, and build a relationship with your banker.

Pay on time

Whether it’s rent, a vehicle lease, supplier invoices or utility bills—don’t let any of it lapse.

Get listed

Register with Dun & Bradstreet, a top credit bureau, or open lines of credit that are reported to Experian Small Business, and Equifax Small Business.

Start easy

Get easy lines of credit with respected companies that report to business credit bureaus.

Get credited

Ask firms you work with if they report your payments to credit bureaus. When considering legal, accounting, and consulting firms in the future, go with ones that do report.

Keep building

Get a line of credit and pay it back promptly. See what you may qualify for with QuickBooks Financing.

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