Building strong business credit should be a top priority for a small business owner looking to maintain and/or expand their business. Few things are more important to the success of a small business than having access to the funds, equipment, or products you need when you need them. Establishing a business credit file will allow you to limit the use of your personal credit and cash flow. It will allow your business to truly function as its own entity.

Dunn & Bradstreet, Equifax and Experian are the three major credit reporting agencies in the United States that lenders and financial institutions rely on for information to grant credit to businesses. Dunn's rating, Paydex, and Intelliscore are the rating systems that are used to determine business credit worthiness. These systems calculate scores based on payment histories, positive tradelines, public data and other factors. In order to successfully obtain business credit, you must first build a favorable credit profile and scores for your business.

The guidelines below will assist you in your efforts in establishing and building your credit profile.

• Establish your business - Establish a unique business name and detemine the best business structure to fit your needs. Also designate an address and phone number to be used for business purposes. Although a website is not necessary, it helps to promote your business.
• Apply for an EIN - Applying for a tax identification number through the Internal Revenue Service automatically registers your business with the IRS. Use IRS form SS-4 to obtain yout tax id or EIN. You can apply for an EIN online, by telephone, by fax, or by mail depending on how quickly you need it. Telephone is the quickest. It takes about 10 minutes.
• Register your Business - Register your business name on both the local and state level. State registration is more expensive. However, it is at this level that your business is incorporated based on the business structure you have chosen. If a license is required to conduct business, it should be obtained at this point.
• Get a D&B D-U-N-S number - This number will establish your business credit file with Dunn & Bradstreet.
• Bank References - It is important when starting your business to choose a bank that you want to build a long term relationship with. Most banks offer free small business checking and many other perks, so choose wisely. The longer the relationship with your bank, the better. It builds credibility not only with your bank, but other vendors as well.
• Financials - Begin building your financial statements from the day you start your business. Most vendors and lenders prefer a two-year history.
• Trade References - Obtaining trade references may be difficult at first. Start out with companies who offer business credit without the need for personal credit checks or guarantees, such as Staples. Once you have established favorable trade references by paying your bills on time, there are many lenders and retail credit card companies that will extend credit to you.
• Business Credit Agencies - Your trade references will establish your presence with the other business credit bureaus. As your score increases, your business will become eligible for various business retail credit cards, trade credit accounts and lines of credit without the need for a personal guarantee or personal credit check. Dell, Citibusiness, Wells Fargo, Kinko's, Lowe's are just to name a few.