Business Credit Guides

What this topic covers

A business can build a credit history of its own, separate from its owner's. Business credit bureaus track how a company pays its suppliers, cards and lenders, and that file is what a lender, landlord or larger supplier checks when the business asks for terms. These guides cover how that file gets started and how it grows: registering the business properly, opening a dedicated bank account, getting the identifiers bureaus use, opening trade accounts with suppliers that report, and moving on to cards and lines of credit.

They also cover the part most new owners do not expect. Early business credit usually requires a personal guarantee, which means the owner is personally liable if the business cannot pay, and the account may appear on the owner's personal credit report. The separation between business and personal credit builds up over time; it is not there on day one.

Who these guides are for

They are written for founders and owners of new or small businesses — sole proprietors thinking about incorporating, recently incorporated companies with no credit file yet, and established businesses that have so far run everything through the owner's personal cards.

The process differs between the two countries. In the US a business typically starts with an Employer Identification Number (EIN) and registers with bureaus such as Dun & Bradstreet. In Canada it starts with a Business Number from the Canada Revenue Agency, and the bureaus and lenders involved are different. The guides walk through both.

Choosing a business card

The business credit card guide sets out criteria rather than a ranked list: whether a personal guarantee is required, whether the issuer reports to business bureaus, fees, and how rewards and charge cards differ from standard cards. Card terms change often, so check the current terms directly with the issuer before applying.