How to build business credit: A complete guide for businesses

Business Credit 101: How to Establish and Grow Your Credit Profile

As your business grows, you may start exploring different ways to fund operations, manage expenses, or support expansion. For some companies, that includes using business credit. For others, especially early-stage or cash-flow-positive businesses, credit may not be a priority at all.

Business credit refers to a profile that lenders and financial institutions use to evaluate how a company handles financial obligations. A strong business credit profile can make it easier to access loans or financing in the future. That said, building business credit is not a requirement for running a successful business, and many modern companies operate without relying on loans, revolving credit, or traditional underwriting.

Many modern businesses begin by prioritizing financial organization and operational clarity before thinking seriously about borrowing. Tools like Slash are designed for this early stage, helping teams manage spending, track cash flow, and stay organized as they grow, regardless of how developed their credit history is.

In this guide, we’ll walk through what business credit is, outline the common steps to establish it, and highlight how modern financial platforms can support growing teams along the way.

Why is your business credit profile important?

A business credit profile gives lenders and financial institutions insight into how a company manages financial obligations. For businesses planning to apply for loans, lines of credit, or other financing products, this information can influence approval decisions and terms.

That said, business credit tends to matter most when a company actively seeks external financing. In the early stages of a business’s life cycle, many teams focus on staying organized, paying vendors on time, and understanding their cash position. These practices are foundational to support long-term financial health, regardless of whether or when credit becomes part of the strategy.

A stronger business credit profile can eventually contribute to:

• Easier access to loans or financing products
• Higher limits on traditional credit cards
• More flexibility when negotiating with financial institutions

But those benefits typically come later, after the basics of financial operations are already in place.

Your guide to building business credit

For companies that plan to establish business credit over time, the following steps outline how the process typically works. Even if credit isn’t an immediate priority, many of these steps are useful for setting up a clean financial foundation early on.

1. Establish your business entity

Registering your business and obtaining an Employer Identification Number (EIN) is an important first step. An EIN is used for tax filings, opening business accounts, and interacting with financial institutions.

Formalizing your business structure, whether as an LLC, corporation, or another entity, helps separate personal and business finances and creates a clearer framework for managing money as the company grows. If you’re just getting started, Slash’s Business Banking and step-by-step EIN support is a great first step (add link to previous article).¹

2. Review your personal credit report

In the early stages, some financial institutions still consider a founder’s personal credit history, particularly when a business is new. Reviewing your personal credit report can provide context on how applications may be evaluated in the future.

At the same time, newer financial platforms, such as Slash, focus more on business activity and cash flow, making them a better choice for founders looking to get started with limited credit history.

3. Apply for a D-U-N-S® Number

A D-U-N-S® Number is a unique identifier used by Dun & Bradstreet to track business credit activity. Companies that plan to establish a formal business credit profile often apply for one so payment history can be reported over time.

This step is most relevant for businesses that expect to use vendor terms or apply for financing in the future.

4. Verify your industry classification

Industry classification codes like NAICS or SIC help categorize your business and are sometimes referenced during loan or financing applications. Making sure your classification is accurate can prevent issues later, even if it doesn’t affect day-to-day operations.

5. Create a business bank account

Opening a dedicated business bank account is one of the most impactful steps a company can take early on. A separate account simplifies expense tracking, improves visibility into cash flow, and makes it easier to work with accountants or advisors.

Platforms like Slash are built to make this process streamlined and accessible for newer teams. With a straightforward application and modern financial tools, businesses can start managing transactions, expenses, and reporting without needing an established credit profile.

6. Obtain a business card

Business cards help separate personal and company spending while making it easier to manage expenses. There are two common types:

• Credit cards, which allow balances to carry over
• Charge cards, which are paid off on a regular schedule

Many early-stage teams gravitate toward charge cards because they simplify expense management and reduce the need to track balances or interest. Slash’s Platinum Charge Card, for example, is designed around day-to-day spending and visibility, making it easier for growing teams to manage expenses as activity increases.

7. Establish vendor accounts

Some vendors offer payment terms that allow businesses to pay invoices over time. For companies building business credit, these accounts may contribute to a credit profile if payments are reported.

For others, vendor terms are simply a way to manage cash timing as operations scale.

8. Regularly review your financial activity

Regardless of credit strategy, regularly reviewing transactions and payment history helps businesses stay on top of spending and catch errors early. Centralized dashboards and real-time reporting make this easier, especially as transaction volume increases.

9. Maintain consistency as your business grows

Building business credit takes time, but so does building strong financial operations. As businesses mature, consistent processes—timely payments, organized records, and clear visibility—tend to matter more than any single financial metric.

How business cards fit into your financial strategy

Business cards are often associated with credit, but their practical value is much broader. For many teams, cards are primarily a way to manage spending, track expenses, and streamline payments.

Charge cards, in particular, appeal to founders who want straightforward spending tools without managing revolving balances. Automated payments and built-in controls can simplify operations as teams grow, regardless of whether credit reporting is a priority.

Streamline your business banking with Slash

As businesses get off the ground, financial tools that are easy to set up and flexible to use can make a meaningful difference. Slash is designed to support growing teams by bringing banking, cards, and financial visibility into one platform.

• Slash Visa Platinum Charge Card. Built for operational spending, with simple onboarding, no personal guarantee, and tools that help teams manage expenses as activity scales.
• All-in-one financial dashboard. View cash flow, monitor transactions in real time, issue cards, and integrate with accounting tools like QuickBooks and Xero.
• Optional access to working capital.⁵ As businesses mature, some may choose to explore short-term liquidity options. Slash offers access to working capital with 30,60, and 90-day loan term lengths. 

For new founders and young teams, Slash provides a practical way to manage finances early on, with room to adapt as the business evolves.

Get started today at slash.com.

FAQs

What is the fastest way to build business credit?

Building business credit typically involves consistent, on-time payments and time. Many businesses focus first on setting up strong financial processes before actively optimizing for credit.

What are the 5 C’s of business credit?

The 5 C’s—capacity, capital, character, collateral, and conditions—are commonly used by lenders when evaluating financing applications.

What are the best business cards?

The best business card depends on how your company operates. Some teams value flexibility, while others prioritize simplicity and expense visibility. Charge cards like the Slash Platinum Card are often a good fit for teams focused on managing spending as they grow.