Building Business Credit: A Journey from Zero to Hero in Six Simple Steps

Building Business Credit: A Journey from Zero to Hero in Six Simple Steps

Building Business Credit: A Journey from Zero to Hero in Six Simple Steps


An Outsourced Controller’s perspective on building business credit for luxury real estate businesses.


Hello there, wonderful humans and aspiring business moguls! It’s Jen Pollinger here, from the vibrant and bustling office of JLW Business Advisors. Buckle up as I take you through the twisty-turny, rollercoaster ride that is building your business credit. Trust me, it’s not just about numbers and forms; it’s about embarking on an adventure filled with hope, resilience, and a dash of humor. So, let’s get this party started!

The ABCs of Building Business Credit: An Intro for the Brave and Bold

First things first, let’s chat about what business credit is. Imagine it as the professional cousin of your personal credit score – a bit more formal but just as influential. Business credit scores and reports are the crystal balls that lenders, vendors, and even insurance providers gaze into to predict your business’s financial future. They’re like the gatekeepers to the land of Opportunity, deciding who gets to cross the bridge based on past money tales.

Remember, though, my dear friends, business credit and personal credit are like distant cousins who only see each other at family reunions. They’re related but live in entirely different worlds. Mixing them up? A classic no-no. Keep them separate, or you’ll be in for a world of confusion.

Embarking on the Building Business Credit Quest: Six Steps to Glory

Ready for the action plan? Hold onto your hats (or ledger books)!

Absolutely, let’s dive deeper into these steps for building your business credit, adding a sprinkle of insight and a dollop of personal experience.

Building Business Credit Step 1: Declaring Your Business Existence

Imagine standing on a mountain peak, shouting into the vast wilderness that your business is here, loud and proud. That’s what registering with your Secretary of State and obtaining an Employer Identification Number (EIN) feels like. But instead of a mountain, it’s paperwork, and instead of shouting, it’s navigating governmental websites.

Registering your business is like declaring to the world (and more importantly, to the government) that you’re serious. It’s a crucial step not just for credit building, but for your overall legitimacy. Choose a business structure that aligns with your vision – whether it’s an LLC, a sole proprietorship, or a corporation – and plant your flag in the ground.

Getting an EIN is equally critical. This number is your business’s identifier for tax purposes and becomes part of your corporate identity. It’s free and fairly straightforward to obtain from the IRS website. Remember, in the realm of business, this number is your shadow – always with you, defining your business’s financial actions.

Building Business Credit Step 2: The Enchantment of the D-U-N-S Number

Ah, the D-U-N-S number, the magical key to unlocking the kingdom of business credibility. Securing this number from Dun & Bradstreet is like receiving your letter to Hogwarts – it’s the beginning of a whole new chapter. This unique nine-digit identifier tells the business world you’re credible. It’s essential for business dealings and establishing your credit profile. Without it, your business is like a ghost in the commercial world – present but not quite recognized.

Building Business Credit Step 3: Befriending Vendors

Navigating the social scene of vendor relationships can be as tricky as navigating high school cliques, but oh, so beneficial. Establishing accounts with vendors and suppliers who report your payment history to credit bureaus is like making friends who say nice things about you behind your back. These relationships can start small; even net-30 terms (where you have 30 days to pay your bill) can set the stage for a solid credit history. Just remember, in this high school, your popularity (aka creditworthiness) grows with each positive report.

Building Business Credit Step 4: The Power of the Business Credit Card

A business credit card is more than just a payment method; it’s a financial building block. By choosing a card from a lender that reports to the credit bureaus, you’re setting the stage for a symphony of positive credit activity. But here’s where the plot thickens – use this power wisely. Mismanagement can lead to a downfall, like a fallen hero in a Greek tragedy. Pay on time, keep balances low, and watch as your credit empire rises.

Building Business Credit Step 5: The Sanctity of Timeliness

Here, my friends, is where the rubber meets the road. Payment history is the backbone of your credit score. Think of it as your business’s GPA – every assignment (or bill) counts. Late payments are the nemesis, lurking in the dark, ready to pounce and tarnish your report. Counter them with the might of responsibility and the shield of organization. Set up reminders, automate payments if you can, and always – always – aim to pay your bills before they’re due.

Building Business Credit Step 6: Vigilance Is Your Watchword

In the epic saga of your business, you’re the hero – and every hero needs to protect their kingdom. Regularly monitoring your credit reports for errors is like patrolling your castle walls. Identity theft, inaccuracies, or unexplained changes could be signs of trouble. Act swiftly to dispute any discrepancies; your credit score is a reflection of your business’s honor, and it must be defended valiantly.

Building Business Credit: Wrapping Up This Wild Ride

There you have it, the epic saga of building business credit, told by yours truly. It’s been a journey of ups and downs, but remember, every step is a step closer to your dream. Whether you’re just starting out or brushing up on the basics, know that I’m here, cheering you on from the sidelines, ready to hand out high-fives and helpful advice.

Don’t forget to connect, share your stories, and of course, keep pushing forward with resilience and a smile. Building business credit might not be the most glamorous adventure, but it’s one that leads to new opportunities, growth, and success.

Until next time, keep those ledgers balanced, those dreams big, and your spirits high.


Jen Pollinger is the enthusiastic Managing Partner at JLW Business Advisors. With her unique blend of financial expertise and zest for life, she is on a mission to make accounting and business numbers the next cool thing. Follow her journey and pick up a tip or two on the way!  For a complementary consultation, please click here to reach out to us.

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Jennifer Pollinger

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