Business credit is a credit profile tied to your company rather than to you personally, tracked separately by commercial credit bureaus rather than the consumer bureaus that track personal credit scores.
Building it typically starts with registering the business properly, obtaining a business tax ID, and opening dedicated business bank accounts and credit lines rather than mixing personal and business finances.
Vendor credit accounts – where suppliers extend short-term payment terms and report them to business credit bureaus – are a common early step in establishing a business credit history.
A strong business credit profile can eventually allow a company to qualify for financing without the owner needing to personally guarantee every loan, which reduces personal liability as the business grows.
It takes time to build, similar to personal credit – consistent, on-time payments across vendor accounts and business credit lines gradually establish the track record lenders look for.