When you’re starting or growing a business, credit may not be the most exciting topic, but it’s one of the most important. Strong business credit can help you secure loans, negotiate better terms with suppliers, lower insurance costs, and make your company more attractive to partners and vendors. On the flip side, poor credit history is one of the most common reasons small business loan applications are declined.

For new businesses, credit often starts with you. Lenders typically rely on the owner’s personal credit score when a company has little or no financial history. That’s why maintaining good personal credit is a critical first step. Paying bills on time, keeping balances low, and monitoring your credit reports can all help strengthen your score. If you’re just getting started or rebuilding credit, resources from the Consumer Financial Protection Bureau and the Federal Trade Commission offer practical guidance.

Once your business is established, you can begin building credit in the company’s name. One of the first steps is to register for a DUNS^® Number from Dun & Bradstreet. This unique nine-digit identifier allows credit bureaus to track your business’s financial activity. From there, responsibly using business credit cards, loans, or vendor accounts and paying them on time, helps build a positive credit profile.

Monitoring your credit is just as important as building it. Review your personal credit reports regularly at AnnualCreditReport.com, the only authorized source for free personal credit reports. For business credit, request reports from major bureaus such as Experian, Equifax, and Dun & Bradstreet. Keeping an eye on these reports can help you catch errors early and protect against identity theft.

It’s also important to know your rights when applying for business credit. Under the Equal Credit Opportunity Act, lenders cannot deny you credit based on factors unrelated to your creditworthiness, such as race, religion, age, or marital status. If your application is denied, you have the right to request a written explanation and to address any issues with the lender. Building business credit takes time, but with consistent effort and sound financial habits, it can become a powerful asset for your company’s future.

If you have any additional questions, contact our Commercial Lending team online at https://coastalheritagebank.com/business-banking/commercial-loans/ or visit any of our branches.