Quick Answer
Building business credit from scratch typically follows a sequence: entity formation, EIN, business bank account, DUNS, reporting vendor trade lines, then graduating to business cards and lines.
Key Takeaways
- Entity formation and EIN come first.
- Three to five reporting trade lines is the typical early milestone.
- Patience - most profiles meaningfully strengthen in 12–24 months.
The Sequence
1) Form a legal entity. 2) Obtain an EIN from the IRS. 3) Open a dedicated business bank account. 4) Register for a DUNS number. 5) Open reporting Net-30 vendor accounts. 6) Add a business credit card. 7) Layer in lines of credit and SBA financing as the profile matures.
Frequently Asked Questions
How long until a business credit profile is 'real'?
Educational sources commonly reference 6–12 months for an initial profile and 18–24 months for a robust profile able to support meaningful unsecured borrowing.