Quick roadmap for new companies

Start with the legal and banking basics, then add tradelines that report to the major business bureaus and keep payments timely. Expect measurable progress in 3–12 months depending on account activity and reporting.

Step-by-step actions (practical)

  1. Form the legal business entity and get an EIN
  1. Open a dedicated business bank account and phone/website
  • Use the exact legal name and a consistent business address on all accounts and applications; lenders and credit vendors match records on these fields.
  1. Get business credit cards and low-limit accounts
  • Start with a secured business card, a company card with a small credit line, or a corporate card that may require a personal guarantee. Use them for regular business expenses and pay the balance in full when possible.
  1. Establish vendor (trade) accounts that report
  • Open Net-30 or other trade accounts with suppliers that report to business credit bureaus. Paying these accounts on time builds tradelines that show payment history.
  • Confirm before you sign that the vendor reports to Dun & Bradstreet, Experian Business, or Equifax Business — many common suppliers do not automatically report.
  1. Monitor business credit reports and correct errors
  • Check reports at the major business bureaus (Dun & Bradstreet, Experian Business, Equifax Business). Set a monthly or quarterly review schedule and dispute inaccuracies promptly.
  • If a file is missing, register with Dun & Bradstreet to request a D-U-N-S Number or claim your profile (Dun & Bradstreet: https://www.dnb.com).
  1. Maintain good habits that drive scores
  • Pay on time or early; payment history is the largest factor lenders and bureaus use.
  • Keep credit utilization low (aim under 30% of limits on revolving accounts).
  • Limit multiple applications in short windows; each inquiry can be noted by some lenders.

Practical timeline and expectations

  • 0–3 months: Entity, EIN, bank account, initial cards/accounts.
  • 3–9 months: Trade accounts begin reporting; you’ll see early activity on bureau files.
  • 9–12+ months: A clearer business credit profile develops; lenders may offer larger lines and better terms.

In my practice helping small businesses, the single biggest mistake I see is assuming any vendor account automatically reports — chasing vendors that do report accelerates progress more than opening extra cards.

Common pitfalls to avoid

  • Mixing personal and business expenses (keep separate accounts and cards).
  • Relying only on personal guarantees; they help access credit but don’t build a distinct business profile unless accounts are set up in the company’s name.
  • Ignoring small vendor accounts. Net-30 suppliers that report reliably can jump-start a profile.

When to seek financing and what lenders look for

Lenders look beyond a business credit score: they review revenue, time in business, cash flow, and owner credit where a personal guarantee exists. If you need financing sooner, consider a small business credit card, a starter line of credit, or alternative short-term financing — but weigh cost and covenants carefully.

Useful internal resources

Authoritative references and next steps

Professional disclaimer: This article is educational and does not substitute for personalized legal, tax, or financial advice. In my work with new companies I often recommend reviewing major credit reports soon after opening accounts and confirming which suppliers report — a small verification call saves months of delay.