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Like You Mean Business: Your LLC’s Credit Blueprint
A no-nonsense guide to building credit that wins lenders and suppliers.
Braden Fiveash: Publisher
April 29, 2025
Good Morning!
Feature: Like You Mean Business: Your LLC’s Credit Blueprint (5 min read)
From the Archive: Make Friends, Not Enemies: The Smarter Way to NDA. Read it here.
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-TCoL
Missed our last feature article? How to Get an SBA Loan in 2025—Even With Tougher Rules. Read it here.
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In business, your handshake still matters. For your LLC, that handshake is your credit profile. And in 2025—with tariffs squeezing margins and SBA loans tightening (new rules hit January 17, 2026)—building a strong business credit history could mean the difference between opportunity and obstacle.
Imagine it: Your retail LLC needs $50,000 to stock up before tariffs spike prices. You walk into a bank. They check your file. They say, “No credit history, no loan.” That sting? It’s real—and it’s avoidable.
This guide gives you a direct path forward—it’s your roadmap to lower rates, stronger supplier terms, and open doors.
Let’s get to work.
Why Credit Matters Now
Your LLC’s credit is its financial reputation. In tight markets, reputation buys flexibility.
Good business credit unlocks:
Cheaper loans: SBA 7(a) at 7% vs. predatory rates at 20%, saving $5,000–$10,000 a year (Nav).
Personal protection: Your savings and home stay shielded from business risks.
Supplier trust: Net-30 terms open up when vendors trust your payment history.
Investor confidence: Credit-savvy companies raise capital 30% faster (FundersClub).
Credit isn’t paperwork. It’s power.
Step 1: Get an Employer Identification Number (EIN)
Your EIN is your business’s Social Security Number. Free, fast, and foundational.
Action Steps:
Apply online at irs.gov (10 minutes).
Save the PDF confirmation in a “Compliance” folder.
Pro Tip:
Always use your EIN, not your SSN, on business forms. It keeps your personal credit shielded from business risk.
Step 2: Nail Down Your SIC and NAICS Codes
Banks and insurers initially judge risk based on your industry codes. Choose the wrong one, and it can increase your business insurance premiums.
Action Steps:
Find the right codes at census.gov/naics.
Match them to your primary revenue source.
Record them accurately in all business documents.
Pro Tip:
Always double-check your codes on financing applications. Errors cost real money in higher rates.
Step 3: Register with Dun & Bradstreet and Nav
You can’t build business credit if no one knows you exist.
Pro Tip:
Start with Nav’s free version if you’re cautious. Upgrade once you’ve opened your first tradelines.
Step 4: Open a Business Bank Account
Separate business from personal. It’s cleaner for bookkeeping—and essential for lenders.
Action Steps:
Bring your EIN, Articles of Organization, and ID.
Your D-U-N-S number.
SIC and NAICS numbers.
Deposit $500–$1,000 to open.
Funnel all business income and expenses through this account.
Pro Tip:
Choose a bank that offers business credit cards and SBA loan programs. Relationships matter.
Step 5: Apply for a Business Credit Card
A business credit card is the fastest tradeline you can establish.
Checklist Before Applying:
Check your personal FICO score (aim for 625+).
Choose cards that report to D&B or Experian.
Keep monthly utilization under 30% of your total credit card line, if possible.
Pro Tip:
Set up auto-pay immediately when the account opens. Always pay at least the minimum by the due date—even if you pay extra manually. Timely payments build your score; late ones destroy it.
Step 6: Monitor Your Business Credit Every Month
Building credit without monitoring it is like planting crops and never checking the field.
Action Steps:
Track your scores through Nav or D&B’s CreditSignal.
Dispute any errors quickly through the bureaus' portals.
Maintain at least three active tradelines.
Pro Tip:
Archive quarterly snapshots of your credit reports. They’ll help you catch issues early—and strengthen future loan applications.
Step 7: Build Tradelines Through Vendors and Merchant Accounts
The more on-time payments you make, the stronger your PAYDEX score.
Action Steps:
Set up merchant accounts (Square, PayPal, Stripe).
Open net-30 accounts with vendors like Uline or Grainger.
Pay invoices early—5 to 10 days before they’re due.
Pro Tip:
Log every vendor account and due date. Best practice is to calendar them. If you use Quickbooks, enter an invoice as a “Bill” when received and schedule the payments at the same time. Precision today saves headaches tomorrow.
Conclusion: Build Credit Before You Need It
There’s an old truth: The best time to plant a tree was 20 years ago. The second-best time is today.
The same applies to building your LLC’s credit. Start now. Build clean habits early.
Let credit become an asset—not a scramble—when growth or survival demand it.
Have an interesting business question and need a free bit of advice? Send your question to [email protected]. No confidential info, please!