Logo

Table of Contents

How to Build Your Business Credit

3 min read
Two people working on business credit at a desk

Establishing a solid business credit history is essential when you’re applying for a business loan. It can also open doors to partnerships and better deals on purchases.

While you may already have good habits when it comes to your personal credit, there’s more involved when it comes to effectively monitoring, updating and maintaining good business credit.

These tips can help you develop and manage this important part of your business.

Understand the business credit rating system

The three major organizations that monitor business credit — Experian, Equifax®, and Dun & Bradstreet — all offer slightly different perspectives on your company. Generally, suppliers look to Dun & Bradstreet for reports that emphasize how you interact with vendors. Lenders often leverage data from Experian and Equifax for guidance on a company’s creditworthiness; Equifax reports collect data from the collection of small business lenders known as the Small Business Finance Exchange, among other sources, while Experian collects information on your history with both vendors and lenders.

Keep in mind that while you have some control over who sees your personal credit score, your business credit report can be viewed by anyone for a fee. For example, companies you may want to work with can access your score before deciding to do business with you.

Building business credit

While individuals build their personal credit score any time they take out credit, you may have to be more proactive to register your business with credit bureaus. Start by getting a Data Universal Numbering System (D-U-N-S®) number, a 9-digit identifier that Dun & Bradstreet uses to start a business credit history. Apply for credit with lenders that supply data to these two agencies to build your Experian and Equifax reports. Be sure to apply for credit and put all company expenses in your business’s name. Open a business bank account to pay company bills and strive to keep business and personal finances separate at every turn so that you can build a strong credit history for your company.

1. Establish a strong track record

The key to a solid credit history starts with buying goods and paying your invoices promptly. You may also need to make sure the bureaus are aware of your best performance. For instance, while thousands of companies, including Home Depot, Staples, and UPS, do automatically report their B2B customers' credit account payments to the credit bureaus, most business suppliers and vendors do not. Ask all your vendors if they report to the agencies; if they do not, politely ask them to do so. Experian’s website provides a template letter that helps you make a request.

If you think you need additional funds for your business, and feel confident you can make payments on time, applying for and repaying a modest-sized loan is another way to demonstrate your ability to manage debt. This payment history will reflect well on you when you are ready to borrow for a more significant investment in your business.

2. Correct report errors

Once your business starts building a credit report, check your profile to be sure it correctly states your length of time in business, how many employees you have and your Standard Industrial Classification (SIC) code. Read your report carefully and look for errors or outdated information that may be hurting your score, such as old unpaid bills or incorrectly recorded defaults. Check back about once a quarter to ensure that no bad information has crept into your report.

Each of the bureaus has a process for correcting inaccuracies or disputing information. Expect to provide an explanation for the error and documentation that backs your claim. In some cases, you may have to request the bureau open up an investigation to solve a problem. For example, if a supplier has erroneously claimed you were late in making payments, you may not be able to tell who made the complaint, as reporting agencies often keep that information hidden.

3. Maintain your score

Keeping your credit score high is a matter of good financial habits: Make your payments on time, keep your information up to date and keep balances on your accounts below the credit limit.

A high business credit score can give you a significant boost when you’re applying for a business loan or looking to build partnerships, so it’s worth the time and effort to keep that number up.

Check Your Rate

You May Also Like

Related Resource Center
A small business loan can help you get the cash you need to grow your business. Getting a business loan can sometimes be tricky, especially if you’re a new business owner.
Jun 23, 2024
6 min read
Man in business attire with glasses staring at camera
Some small businesses seem to thrive no matter what the economy is doing. What’s their secret? Here are a few business ideas to consider and tips to help you bake some resiliency into your venture.
Aug 15, 2023
6 min read
Asian man wearing blue apron looking out shop doorway with sign showing open for business in window
Before taking out a loan, it’s important to understand how the loan repayment will work and how much your monthly payments will be. With amortized loans—which includes many consumer loans—each payment gets split into an interest payment and principal payment.
Aug 21, 2021
4 min read
man considers amortization methods
Most small businesses need to obtain financing at some point, but there can be an overwhelming number of options out there. We know as a business owner you’re busy and don’t have a lot of time to spare.
Sep 17, 2017
5 min read
Group of people in a conference room discussing business finance
If you're planning on consolidating debt or making a big purchase like buying a home or new car, chances are you'll need financing to help reach your goals. Understanding the true cost of a loan is key to getting the best deal possible—and most often that starts with shopping APRs and interest rates across different lenders.
Jul 15, 2024
6 min read
Woman in yellow shirt in coffee shop writing in notebook in front of laptop
Related Impact
From groceries and diapers to Halloween costumes for pets, nearly 60% of American consumers prefer to shop online for everyday items that make life more convenient, comfortable, and enjoyable. And with rising prices showing no signs of stopping anytime soon, we’re pleased to introduce StackitTM from LendingClub Bank—a new browser extension that automatically finds and rewards eligible members with coupons and cash back for extra savings at more than 15,000 favorite online retailers.
Nov 13, 2022
2 min read
blog header stackit 765x430 v1-1
Even in today’s low-yield, high-inflation environment, it’s essential to keep a certain amount of money in an easy-to-access checking or savings account for things like daily household and emergency expenses, or to meet short-term financial goals.
Oct 2, 2022
5 min read
LendingClub Rewards Checking Nationally Certified as Trusted, Afforda
Since 2007, LendingClub has been on a mission to deliver a world-class experience to all our members. This month we took a moment to reflect on the more than four million members who have chosen LendingClub as their partner to help them reach their financial goals.
Apr 19, 2022
2 min read
Illustration of large number 4 and letter M made up of colorful, tiny illustrations of ethnically diverse people
In March 2022, we hosted our first quarterly webinar where we celebrated our one-year anniversary as a digital marketplace bank. 
Mar 6, 2022
less than a minute read
Blog-post
LendingClub completed the acquisition of Radius Bank in February 2021. At that time, in addition to the direct-to-consumer deposit business, we inherited a fintech partner program, and several lending businesses. As we reach the one-year anniversary of the acquisition, and in conjunction with the conclusion of a strategic review of our business operations, we have made the decision to discontinue certain businesses that don’t fit our mission.  
Jan 2, 2022
2 min read
Man in blue button up shirt and glasses smiling
Related FAQ's
We apply any one-time payments directly to your principal balance, reducing the total cost of financing.
Jun 7, 2023
less than a minute read
You can partially or fully prepay your loan at any time with absolutely no prepayment penalty or fee.
Jun 7, 2023
less than a minute read
Need to change the bank account you linked when you applied? You can make that change directly from your Account Summary.
Jun 7, 2023
less than a minute read
If you're ready to pay off your loan, congratulations! That's a big achievement. Once you pay off your loan, you won’t owe any additional interest and your monthly payments will end.
Jun 7, 2023
less than a minute read
How Do I Make Changes to My Payment Date?
Jun 7, 2023
less than a minute read
Related Glossary
{noun} A type of credit that allows the borrower to make charges and payments against a set borrowing limit, paying interest only on outstanding balances.
Sep 6, 2023
4 min read
{noun} The total annual cost to borrow money, including fees, expressed as a percentage.
Mar 21, 2023
3 min read
{noun} The amount of unpaid interest that has accumulated as of a specific date, either on a loan or an interest-bearing account or investment. 
Mar 21, 2023
4 min read
A debt that is written off as a loss because the financial institution or creditor believes it is no longer collectible due to a substantial period of nonpayment.
Feb 7, 2023
3 min read
{noun} An interest rate that remains the same for a set time, usually for the life of the loan.
Feb 4, 2023
3 min read

LendingClub Bank and its affiliates (collectively, "LendingClub") do not offer legal, financial, or other professional advice. The content on this page is for informational or advertising purposes only and is not a substitute for individualized professional advice. LendingClub is not affiliated with or making any representation as to the company(ies), services, and/or products referenced. LendingClub is not responsible for the content of third-party website(s), and links to those sites should not be viewed as an endorsement. By clicking links to third-party website(s), users are leaving LendingClub’s website. LendingClub does not represent any third party, including any website user, who enters into a transaction as a result of visiting a third-party website. Privacy and security policies of third-party websites may differ from those of the LendingClub website.

Savings are not guaranteed and depend upon various factors, including but not limited to interest rates, fees, and loan term length.

A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $19,584 for a term of 36 months, with an interest rate of 10.29% and a 6.00% origination fee of $1,190 for an APR of 14.60%. In this example, the borrower will receive $18,663 and will make 36 monthly payments of $643. Loan amounts range from $1,000 to $40,000 and loan term lengths range from 24 months to 60 months. Some amounts, rates, and term lengths may be unavailable in certain states.

For Personal Loans, APR ranges from 9.57% to 35.99% and origination fee ranges from 3.00% to 8.00% of the loan amount. APRs and origination fees are determined at the time of application. Lowest APR is available to borrowers with excellent credit. Advertised rates and fees are valid as of July 11, 2024 and are subject to change without notice.

Checking a rate through us generates a soft credit inquiry on a person’s credit report, which is visible only to that person. A hard credit inquiry, which is visible to that person and others, and which may affect that person’s credit score, only appears on the person’s credit report if and when a loan is issued to the person. Credit eligibility is not guaranteed. APR and other credit terms depend upon credit score and other key financing characteristics, including but not limited to the amount financed, loan term length, and credit usage and history.  

Unless otherwise specified, all credit and deposit products are provided by LendingClub Bank, N.A., Member FDIC, Equal Housing Lender (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. Credit products are subject to credit approval and may be subject to sufficient investor commitment. ​Deposit accounts are subject to approval. Only deposit products are FDIC insured.

“LendingClub” and the “LC” symbol are trademarks of LendingClub Bank.

© 2024 LendingClub Bank. All rights reserved.