How to Build Business Credit For Free

Business credit gives you a lifeline that enables you to get the materials or inventory you need today and then pay once you have generated some revenue. There are companies out there who offer to build business credit for your company at a price, but they don't do anything that you cannot do yourself.

Find small suppliers who offer net 30 payment options and who will report your payments to the business credit bureaus. You can find these companies by looking this information up on their website, calling and asking or inquiring with other business owners who have done business with the company before.

Release your company's information to the four major business credit bureaus. According to Entrepreneur, major business credit bureaus include Duns and Bradstreet, Experian Business, Equifax Business and Business Credit USA.

Apply for revolving store-branded credit cards. These include stores such as Staples, Office Depot and Home Depot. While some stores used to allow even relatively new businesses to obtain credit without requiring a personal guarantee and checking the applicant's personal credit history, most now ask for the personal guarantee and the social security number of the applicant, at a minimum.

Get a business identity. No one is going to lend to you if they cannot verify that you are a legitimate business. This includes forming a corporation or LLC that is registered with your Secretary of State, obtaining local licenses and certifications, having a dedicated business phone number listed in the public domain, opening a business bank account and applying for an Employer Identification Number from the IRS. These steps help legitimize your company in the eyes of potential lenders.

Try for major credit cards and loans. This is where the big money is and, once you work your way up to this level, you should be able to secure substantial loans that will let you continuously buy needed inventory and materials. As with store cards, you will likely need to give a personal guarantee and put your social security number on the application. Your personal credit history may be checked before credit is given.

Difficulty: Moderate