8 Best No Personal Guarantee Business Loans 

The reality is that most small business loans require a personal guarantee (PG).  

The good news is that there are business loans out there that you can get without a personal guarantee. Here are some of the best no PG business loans to consider as you’re seeking out ways to finance your business activities.  

Best No Personal Guarantee Business Loans 

1. Supplier Credit
2. Commercial Real Estate Loans 
3. Business Credit Cards 
4. Merchant Cash Advance
5. Invoice Factoring 
6. Equipment Financing or Leasing
7. Term Loans
8. Lines of Credit

1. Supplier Credit 

Supplier credit, also called trade credit or vendor credit, is a form of credit in which a vendor extends payment terms (like net 30 terms) to small businesses to help them grow their business credit score while paying for the products or services they need to purchase for their business.  

Many supplier credit opportunities require no personal guarantee or personal credit checks and come with the ability to have your payments reported to a major credit bureau as a tradeline so that your low or non-existent credit score improves with each payment.  

One minor disadvantage across various suppliers is the potential for one-time or continuing fees as well as purchase minimums, which will require you to have a minimum payment amount before you can take advantage of their net 30 terms.  

If you’re interested in supplier credit, you can sign up for a net 30 account with suppliers like Grainger or Quill. 

2. Commercial Real Estate Loans 

Are you a physical business owner looking to purchase commercial property like restaurant buildings, retail stores, or warehouses?  

One key benefit of being a traditional brick-and-mortar business is that you can access no personal guarantee commercial real estate loans that you need to execute your business vision.  

As with many other loans, your current credit score and business history will play a crucial role in the terms you receive. More importantly, the value of the property you’re looking to secure will affect the outcome too when you’re looking for this type of business financing.  

Many commercial real estate loans and even alternatives, like hard money loans, will require a personal guarantee. That being said, not all do. One type of commercial real estate loan worth looking into is non-recourse commercial property loans.  

Non-recourse commercial property loans protect your assets by making it so that the only asset that’s at risk should you default on your loan is the property you own. Your building is your collateral. 

That being said, there are some disadvantages worth considering, such as the typical $1 million loan minimum and the fact that lenders tend to offer these loans to borrowers looking to purchase rental properties.  

Given the nature of non-recourse loans, lenders may only offer these to those who are guaranteed to generate revenue from their properties and those who are considered to be low-risk borrowers. 

A low-risk borrower means having a high credit score, a good credit history, and sizable revenue. 

Some institutions that offer non-recourse commercial real estate loans include the Commercial Real Estate Finance Company of America and other companies that you can use to find lenders like The Madison Group.  

3. Business Credit Cards 

Business credit cards can be an excellent way to fund your business. No matter your current credit situation, there’s a business credit card out there for you that you can leverage to both bolster your credit and finance your small business.  

But are there an equal number of no personal guarantee business credit cards out there to choose from as well?  

As it turns out, there are! 

If you’re looking for a no PG business credit card to support your business financing needs, one place to start would be with the Ramp Card.  

Ramp offers a corporate charge card that easily integrates with its other financial management solutions, allowing you to easily capture receipts, control spending, and establish budgets across different cards with ease.  

More than that, Ramp doesn’t require a personal credit score or a personal guarantee, you get unlimited virtual and physical cards (also compatible with Google Pay and Apple Pay), and your credit limit can increase as your revenue does, allowing you to scale with ease.  

With the above in mind, there are some things to take note of. To apply for a Ramp card, your small business must: 

• Be registered in the United States as a corporation, LLC, or LP.  
• Have at least $75,000 in the bank account that you provide with your application (the Ramp Card is an unsecured card that does not require collateral).  
• Conduct the bulk of its operations and spending in the United States.  

The only downside of note with the Ramp Corporate Card is that you do have to pay your balance in full every 30 days, which can make it a bit harder to keep your account in good standing and finance your business.  

If you’re looking for something that might be more within the realm of possibility for your business, some worthy alternatives include the Brex Corporate Card and the SVB Innovator Card.  

4. Merchant Cash Advance 

A merchant cash advance, also known as a business cash advance, is a unique type of business financing in which businesses receive a lump sum payment in return for promising the lender a portion of their future credit and/or debit card sales, calculated based on past sales.  

A major benefit for small businesses is a merchant cash advance typically requires no personal guarantee or high credit score. It also boasts a rapid approval process, quick access to funds, and may say that there’s no collateral required (although terms can always vary).  

The downside? Business cash advances often carry the same risks as personal cash advances and could affect business credit like personal credit, with financing that may carry strict daily or weekly repayment loan terms, high financing fees, and the potential to fall into debt much easier.  

This is why it’s important to truly assess the need for a merchant cash advance prior to applying for one, even if you have bad credit or other issues that can make it hard to secure business funding in other ways without a PG. 

Still, it is a resource that can help you access funding easily with no personal guarantee. One of the best ones is Credibly’s merchant cash advance, with funding up to $600,000, an approval process that can get money to you in as little as four hours, and fluctuating remittances. 

5. Invoice Factoring  

Invoice factoring and invoice financing represent a unique funding method that some small businesses may not be aware of.  

With invoice financing, you reach out to a lender for a short-term loan, one that typically requires interest on the cash advance, weekly payments, and a processing fee. In return, you use your current invoices as collateral. One or more invoices may be used as collateral. 

With invoice factoring, interested parties will buy invoices from you outright and provide you with funding that’s less than the true value of the invoice, which can take the stress of collection off your shoulders while still helping you finance your business.  

Both options are typically utilized by businesses with bad credit and a lack of access to other funding opportunities. They can help you receive funding during emergencies and during times when cash flow may not be looking as good as you need it to be.  

Most lenders who offer invoice financing or factoring also require no personal guarantee, and you likely won’t need a minimum credit score to be able to use these resources either. 

That being said, they do carry risks, such as the high costs of tapping into these opportunities and the limitations, with B2B businesses being the ones most often able to use invoice factoring or financing when cash flow is slow. 

If you’re interested in pursuing invoice factoring or financing and you don’t mind using invoices as collateral, one company that can help you get started is Resolve.  

6. Equipment Financing or Leasing 

Equipment financing or leasing allows small businesses to tap into the funding that they need to acquire the equipment that their business relies on to operate. An excellent example of this is a restaurant that needs kitchen equipment to open and start serving customers.  

Equipment financing or leasing solutions like those offered by National Funding make it easy to get the resources you need to secure medical equipment, commercial fleets, and office equipment, just to name a few.  

You can get up to $150,000 in funding after completing a seamless application process that will help you get a tailored payment plan that’s ideal for your current financial situation and business needs.  

They do require you to have fair to excellent credit scores, will need you to have at least six months of business history, and need quotes from vendors for the equipment you plan on purchasing.  

It’s important to note that there’s always the potential for some equipment financing business loans to require a personal guarantee.  

Ensuring that you’re a trustworthy borrower and looking for equipment financing options from lenders that detail the equipment as your sole collateral will help you access funding that doesn’t put your personal assets at risk.  

7. Term Loans 

Aptly named, term loans are small business loans with specific term lengths that give your business access to a lump sum of money you can use to fund your business.  

Repayment terms and loan lengths will vary, with the shortest lasting around one to five years and the longer ones lasting up to 25 years.  

If you’re currently researching term loans that require no personal guarantee, you might be disappointed to find that most of these business loans require a personal guarantee.  

For example, you may immediately think of Small Business Administration or SBA loans, which do require a PG. 

As per our advice in the previous section on business lines of credit, positioning yourself as a less risky borrower may make it so that you can approach institutions (good credit score, revenue, and so on), whether you’re looking into some of the best unsecured business loans like the Business Advantage Term Loan from Bank of America or opportunities from Funding Circle. 

Take your time to carefully research your business funding options and shop around to find a term loan (unsecured loans with no collateral or secured loans) from lenders that give you the most financing while also allowing you to carry the least amount of risk.  

(Bonus Tip: If you’re interested in a term loan that doesn’t require a personal guarantee and focuses on helping you save and build your credit, consider a business credit builder loan.). 

8. Lines of Credit 

A line of credit refers to any type of credit where you’re extended a credit limit that you can tap into, only paying interest rates on the amount you borrow, and immediately having access to that full limit again once you pay your borrowed funds back.  

Some businesses will think of lines of credit in terms of business credit cards, and this is certainly one type of business line of credit with no personal guarantee that you can obtain. While it’s true that business credit cards come with credit lines, lenders don’t classify them as lines of credit.  

Because not all lines of credit require you to have virtual cards or physical cards to tap into business funding. An excellent example to look at when discussing business lines of credit is FundBox.  

FundBox is a company that offers business lines of credit up to $150,000, boasting a fast application process, quick access to funds, and flexible repayment terms.  

For example, the main requirements that small businesses need to meet in order to access a Fundbox line of credit include being in business for at least six months, having a business account, making at least $100,000 in annual revenue, and having a 600+ FICO score.  

Now, it’s important to remember that, with all companies like FundBox and even traditional banking institutions like Bank of America, the word may does a lot of heavy lifting when they say you may need to sign a personal guarantee to access business loans.  

Personal guarantees are in place to protect financial institutions, and they may only waive them in specific situations, especially with secured business loans.  

Unsecured business loans (no collateral required) are often the most accessible, but they typically require a personal guarantee due to this.  

There are limited personal guarantee-free choices, but that doesn’t mean there are none. 

How can you make sure that you’re in a better position to avoid a personal guarantee regardless of the loan amount or terms? Here are a few areas to focus on before you start filling out applications for business financing. 

• Strong Business Credit Scores and Credit History: Lenders are more likely to waive the personal guarantee requirement if you have a strong business credit score and an extensive history proving you pay back your loans. As it is with any type of loan, the stronger your credit (much better than the minimum credit score), the better the terms.  
• Impressive Revenue: Lenders give the best terms to small businesses that have strong business activity. The more revenue you’re bringing in, the more it shows them that you can pay back your debts with ease.  
• Extensive Business History: The longer your small business is active, the more stable your business appears to lenders. Businesses that have just started or ones that have not been operating for as long are seen as a higher risk, which is why they often sign personal guarantees. Lenders like to see at least 2 years of business history for this type of financing product. 

It’s important to remember that there’s no guarantee you will be able to avoid a personal guarantee, but the tips above may increase the likelihood that you can negotiate without having to sign one.  

Moreover, keep in mind that there are plenty of definitive no personal guarantee business loans you can tap into below! 

How eCredable Can Help You Build Credit Without a Loan 

Whether you’re looking to improve your chances of securing funding without a personal guarantee or you want to access better funding opportunities, you need good business credit.  

eCredable makes it easy to build your business credit by reporting your subscription payment as a business tradeline to Dun & Bradstreet, Experian, and Equifax. Moreover, we’ll help you report third-party bills like business utilities to Equifax and Creditsafe.  

Whether you’re interested in our basic Business Lift offering or you want additional cash flow insights and support with our Business Lift+ subscription, sign up today to build your business credit and take your business to the next level! 

 

The Capital One Secured Business Credit Card 

Does Capital One Have a Secured Business Credit Card? 

No. Capital One does not offer a secured business credit card.  

As you’ll discover, a Capital One secured business credit card is not the best choice for building credit. If they did offer one, there are much better alternatives.  

Are Secured Credit Cards the Best Way to Build Business Credit? 

If you’re looking to build business credit, you might be researching the best secured business credit cards.  

While they might seem like a logical choice, they’re not as necessary as one may assume.  

There are plenty of challenges and issues that come with applying for a secured business credit card. These include:  

• You will typically be required to provide your SSN and undergo a personal credit check. Searching for a Capital One business credit card EIN only is unlikely to turn up any results. A Capital One credit card could put your personal credit score and credit history at risk.  
• Secured business credit cards generally offer you one tradeline. More than that, they most often only report to one business credit bureau rather than several credit bureaus. This does little to support your score, all while coming with undesirable restrictions. It offers less than an unsecured credit card and presents more problems than solutions. 
• They cost a lot upfront to access the secured credit card in question. You may pay up to $1,000 to get an equal credit limit. This credit limit is likely to be exhausted quickly as well (in comparison to the credit limit offered by an unsecured card). There are usually high interest rates and fees associated with these cards as well. A Capital One business card can be expensive. That is, if you’re approved. You can still be turned away from secured business credit cards. Successful account opening is not guaranteed. 

So, what’s the solution? We recommend vendor tradelines instead of a Capital One business card.  

Vendor tradelines are cheaper and easier for businesses to secure. You can open many accounts and benefit from several tradelines at once. You may even get a higher credit limit than you would with a secured credit card issuer.  

How to Build Business Credit Without Secured Business Credit Cards 

The best way to build business credit without secured business credit cards is via vendor tradelines.  

Tier 1 business credit vendors offering net 30 accounts have very few hoops to jump through. They will generally report to at least two major business credit bureaus. They also come with limited fees in comparison to a secured card.  

Net 30 accounts are accounts that you have to pay back in 30 days. So long as you pay on time or earlier than expected, you can build business credit quickly.  

eCredable can help you tap into the credit-building benefits of vendor tradelines with ease. eCredable comes with a myriad of benefits you won’t find with secured business credit cards.  

When you sign up for our services, you receive: 

• Multiple Tradelines: eCredable helps you build credit fast with multiple tradelines. Your monthly subscription payment is reported as a tradeline. Then, we help you leverage your recurring bills to build credit. Our third-party bill reporting service helps you develop even more tradelines to build credit with ease.  
• Reduced Fees: eCredable is much cheaper than secured business credit cards. This helps you save money while still getting the credit-building benefits you need.  
• Guaranteed Qualification (And No Personal Credit Score Check): So long as you have an EIN and an established business, you’ll be able to sign up for eCredable. We don’t check your personal credit score like a secured credit card might. Whether you have bad credit, fair credit, or no credit, we’re there for you. 
• Comprehensive Reporting: Our primary subscription is reported to D&B, Equifax, and Experian. Meanwhile, all third-party bills are reported to Equifax and Creditsafe.  

If you want to build business credit with ease, get started with eCredable! 

Which Credit Bureaus Do Capital One Business Credit Cards Report To? 

When you’re looking into business credit cards, there are two important questions to ask.  

Which business credit bureaus does this card report to, and does it report to consumer credit bureaus as well?  

The first answer as it pertains to Capital One business credit cards is D&B, Equifax, and Experian.  

This is appealing as these are the bureaus you need to report to in order to build credit successfully. You do generally get the desired support with a Capital One business card. 

But what about personal credit? Does Capital One business card report to personal credit? Unfortunately, Capital One business cards report to consumer credit bureaus as well.  

Many Capital One business cards report activity to the three major consumer credit bureaus: TransUnion, Equifax, and Experian.  

There are a few exceptions. Some Capital One business cards only report negative activity. This will only affect personal credit history if you fail to pay or pay late. These include the Capital One Spark Cash Plus and the Capital One Venture X Business cards. 

Still, this is not something that you want when building business credit. Should something happen to your business, your personal credit score is on the line as the business owner. It will damage your credit history and make it harder to secure personal funding.  

It’s always best to keep business finances and personal finances separate. If you mix the two, you could end up in a bad spot financially.  

Is It a Good Idea to Use Personal Secured Credit Cards Instead of Business Secured Cards? 

Continuing with the above point, this is rarely a good idea. Secured business cards are designed for business use. Personal secured cards are designed for personal use.  

This is true no matter if you’re recommended a personal secured card to boost cash flow while shopping around. 

Once you start opening personal accounts to fund your business, you put your personal financial stability in jeopardy. A personal secured credit card is a risk to your financial health.  

Should something happen, you’re on the hook for those debts. This consequence of using a personal secured card can result in a plummeting credit score, legal trouble, and more.  

If you can’t find a secured business credit card or you want a better alternative, sign up for eCredable Business Lift or Business Lift+! 

Best Business Credit Building Companies in 2025 

Good business credit is often essential for securing financing for your company, especially if you’re interested in raising large amounts of money through a business loan or business line of credit from a traditional financial institution. 

Here are some of the best business credit building companies in 2025. They can help you establish your business credit history, monitor your progress as you go, and fund your business operations. 

1. eCredable 

Generally, the more tradelines you have in your business credit reports, the easier it is to build strong business credit. However, opening multiple business tradelines one at a time can be surprisingly expensive, not to mention, time-consuming. 

eCredable offers an efficient shortcut. With our Business Lift program, you can report the recurring business expenses you’re already paying to the business credit bureaus, transforming each of them into a separate vendor tradeline. 

There’s no limit to the number of expenses you can report, and in addition to your current payments, you can report up to two years of historical activity. We’ll even report your monthly eCredable subscription as its own tradeline to give you an extra boost. 

As a result, you can use eCredable to expand and deepen your business credit history much more quickly and affordably than you could with traditional vendor tradelines, such as net 30 accounts. 

In fact, our clients see an average increase of 32 points in their business credit score at each participating business credit bureau in the first three months. Get started today with no hard pull of your business or personal credit score. 

2. FairFigure 

FairFigure is a business credit management platform that offers credit monitoring, financing, and credit building products and services. Its goal is to provide business owners with everything they need to build business credit in one place. 

The credit monitoring services include access to your business credit reports and scores at Dun & Bradstreet (D&B), Creditsafe, and Equifax Business. 

You’ll also get FairFigure’s proprietary Fundex Report and Foundation Score, which incorporate your financial data. The only business credit report missing from their service is Experian Business. 

They also provide all three major personal credit reports and scores, including those from TransUnion and the consumer divisions of Equifax and Experian. You’ll get a copy of your VantageScore 3.0 using each credit bureau’s data. 

Meanwhile, the financing and credit building features come from the FairFigure Capital Card, which offers credit lines starting at $1,000 for companies with at least three months in business and $2,500 or more in monthly recurring revenue. 

FairFigure reports the card and your monthly subscription to the major business credit bureaus as separate tradelines. You can also apply with your Employer Identification Number (EIN) only, and no personal guarantee is ever required. 

3. Credit Suite 

Credit Suite offers a step-by-step credit building program called the Fundability System. It’s designed to take you from having no business credit to having everything you need to qualify for business financing in place. 

Credit Suite breaks the Fundability System down into five steps: 

1. Starting point analysis: Credit Suite analyzes your business’s credit history and financial health to help you understand what types of financing you’re currently qualified for and plan a path to improvement. 

2. Weakness correction: Credit Suite identifies and removes limiting factors that may be holding you back from qualifying for credit accounts. This can include things like establishing your 411 listing or opening a business bank account. 

3. Credit report opening: Credit Suite helps you open, access, and correct any errors in your business credit reports. It currently partners with Nav to provide its business credit monitoring services. 

4. Fundability maximization: Credit Suite guides you through a personalized roadmap to help you enhance your business credit profile, enabling you to secure more and better financing. 

5. Credit issuer matching: Credit Suite matches you with vendors and lenders that are appropriate for your credit profile, helping you build credit history and secure financing without relying on your personal credit or signing a personal guarantee. 

Your monthly subscription to the platform grants you access to a dashboard that holds your hand through each of these steps, saving you the time and stress of navigating the complex world of building business credit on your own. 

4. Nav 

Nav has recently expanded its suite of products and services significantly. It now provides a business checking account, a financial product marketplace, cash flow tracking, credit monitoring, financing, and business credit building. 

Its credit monitoring, financing, and business credit building features are all rolled into its Nav Prime subscription, which has three different tiers. 

Track, the first tier, provides business and personal credit monitoring services for all of the major credit bureaus, including D&B, Experian, Equifax, and TransUnion. Nav also reports your subscription to the credit bureaus as a vendor account. 

Build, the second tier, includes everything in the first tier plus access to the Nav Prime Card, which is a business credit builder card that Nav reports to the business credit bureaus as a financial tradeline. 

Nav automatically charges your bank account to pay off your balance each day, but that means you don’t have to worry about your credit utilization. 

Expand, the third and highest tier, includes everything in the second tier plus access to the rare FICO SBSS score, which is the credit score lenders who partner with the Small Business Administration (SBA) are required to use to screen candidates. 

In addition, Expand includes a dedicated business credit coach who can provide strategic advice and help you improve your company’s creditworthiness. 

5. The CEO Creative 

The CEO Creative is essentially a digital store with an eclectic mix of products and services, including: 

• Electronics 
• Branded apparel 
• Home and office supplies 
• Business plan templates 
• Website design and digital marketing 

While none of these directly relate to building credit for your business, The CEO Creative also offers net 30 payment terms. If you sign up, it’ll report the vendor credit line to the business credit bureaus. 

The CEO Creative is also unusually candid about the qualification requirements, which shouldn’t be an issue even for a new small business owner. They include: 

• Be located in the United States 
• Exist for at least 30 days 
• Have a clean business history with no late payments 

You can usually expect to qualify for a credit limit between $1,000 and $1,500, and CEO Creative reports to D&B, Equifax Business, Creditsafe, and the National Association of Credit Management. 

However, there is a $39 annual fee and may be a minimum spend requirement to submit your application. In addition, you must pay 20% of each order upfront, and only the remaining balance is payable using net 30 terms. 

6. JJ Gold 

Similar to The CEO Creative, JJ Gold is a digital store that doubles as a net 30 vendor to help new business owners add another trade credit account to their business credit reports. 

As you can probably guess from the name, JJ Gold specializes in jewelry, including bracelets, earrings, and necklaces. However, you can also buy a variety of other products from its shop, such as: 

• Hair and beauty products 
• Gift sets for him and her 
• Candles and decorations 
• Eyewear and apparel 

JJ Gold’s eligibility requirements are the same as those of The CEO Creative. Your business must be located in the U.S., have existed for at least 30 days, and have a clean business history with no late payments. 

There’s a $99 annual fee for the account, and new borrowers must pay 20% of each order upfront, though that requirement may be waived once you become more qualified. 

Additionally, there may be a minimum spend requirement to apply, and interest accrues on any past-due payments at a rate of 17.99% APR. 

7. Business T-Shirt Club (Branded Apparel Club)  

Branded Apparel Club, formerly known as Business T-Shirt Club, offers—you guessed it—branded apparel, including t-shirts. You can purchase a variety of clothing from the store, including blank, customized, and retail apparel. 

However, once again, the credit building value of the company lies in its net 30 account. This time, there are no eligibility requirements other than signing up for an annual membership, which costs $69.99 per year. 

You’ll receive a net 30 account with an initial credit limit of $2,500, plus access to a free design tool and graphic design services. However, there’s a 50% deposit required for at least your first five orders and a $100 minimum order requirement. 

Each of the companies we've explored offers something that can help you build good credit for your business, whether that’s additional tradelines, credit monitoring, or personalized strategic guidance. 

However, these are far from your only options. There are many other strong credit building products to consider, such as a business credit builder loan or secured business credit card. Ultimately, the key is finding what works for your business. 

Business Credit Cards With No Personal Guarantee  

Generally, most lenders require a personal guarantee by the company owner before issuing business credit cards.   

After all, it’s one of the simplest ways to provide security if you default on a credit card, but it does open the owner to potential financial liability.   

But as we’ll learn, some lenders don’t require a personal guarantee as long as you qualify.   

How Personal Guarantees on Business Credit Cards Work  

In a previous post, we discussed How to Build Commercial Credit with Bad Personal Credit. To build on that, we now want to discuss obtaining credit cards with no personal guarantee.    

Generally, lenders will require a personal guarantee to obtain cards. A personal guarantee gives the lender more confidence that they will be repaid, so the personal guarantee will increase the likelihood that you will be approved for cards.   

As for when lenders require a personal guarantee, it is more likely when the company does not have enough financial history to adequately rate the likelihood the owner will pay any outstanding debts.    

For instance, new businesses with owners who are fresh out of college are much more likely to require a personal guarantee than older businesses. Beyond the age of the company, businesses with a limited credit profile or bad credit will also generally require a personal guarantee.    

With a personal guarantee, you must personally pay any outstanding balance in the event you cannot pay the balance on your credit cards.     

But when there’s no personal guarantee, this means that you do not have to use personal assets to pay the outstanding balance.  

So, for example, if your company fails or goes bankrupt, you don’t have to worry about losing your assets.   

As a result, these cards are far more appealing for a company owner, as they allow you to take advantage of commercial credit cards without putting your personal assets at risk.    

8 Business Credit Cards With No Personal Guarantees  

In a previous post, we discussed how to build commercial credit without using personal credit - How to Build Commercial Credit Without Using Personal Credit.   

Now that we have discussed how personal guarantees on credit cards work, we would like to discuss a few of our favorite business credit cards that doesn't require a personal guarantee.

1. FairFigure Capital Card 

FairFigure Capital Cards offer a unique opportunity to fund your company. It provides you with the financial support you require without the undesirable elements you’d find in most credit cards.  

Here are some key points to consider:  

• EIN-Only: FairFigure Capital is EIN-only. This means that you don’t need to undergo a personal credit check, sign a personal guarantee, or worry about affecting your personal credit score.  
• Easy Application: Applying is quick and easy. There’s no paperwork required. Provide them with your business’s information, and they’ll fund you if you qualify.  
• Scalable Funding: This option offers funding based on monthly revenue. As long as you have a company that makes $2,500/month and is three months old, you’ll qualify for funding. As you make on-time payments and scale, your funding grows with you as you change and evolve. 
• Flexible Payback Terms: Take control of your payments with flexible payback terms. Make your payments in full in four weeks or eight weeks.  
• Credit-Building: This lender reports payments to Creditsafe, Equifax Commercial, the SBFE, and the FairFigure Foundation Report.  

In summary, this option provides you with funding and credit-building opportunities without personal credit checks and guarantees or strict usage guidelines. Apply for FairFigure Capital to see how it can support your company.  

2. Brex Card  

Brex cards offer a unique approach to the space. Here are some key points to consider:  

Personalized Credit Limits: Brex sets credit limits based on various financial factors such as revenue or dollars raised. This approach allows businesses to get higher credit lines based on the business’s financial health.  

High Reward Program: Brex offers competitive rewards for company expenses and allows you to redeem them for cashback, credits, or even billboards.    

Various types of cards, including:  

• Time and Expense Cards: Enable travel expenses that automatically comply with your travel policies with automated controls, receipts, and memos.   
• Vendor Cards: Establish limits for specific vendor expenses that recur or expire to avoid unwanted charges.  
• Purchase Cards: Tie it to per-transaction accounts payable controls including approval flows. 

24/7 customer support: Address questions or issues with 24/7 support from anywhere by call or live chat. Receive account notifications through various methods including text, email, or WhatsApp.  

In summary, Brex provides flexibility, rewards, and credit limits tailored to a business’s financial situation. It’s a great choice for startups and small to medium-sized businesses.    

3. Ramp Corporate Card  

Ramp Corporate Cards have a unique offering. Here are some key points to consider:  

Charge Card, Not a Traditional Card:  

Ramp operates as a charge card, which means you must pay off the balance in full by every billing cycle due date. They issue unlimited virtual and physical cards to support your entire team.  

High Credit Limits Based on Balance:  

Ramp determines credit limits based on your company’s balance linked to Ramp. You can qualify for credit limits that are up to 20 times higher than traditional options based on Ramp’s underwriting policies.    

Robust Features:  

• 1.5% Unlimited Cashback: Ramp Visa Corporate Cards earn unlimited 1.5% cashback on all spending.  
• Built-in Spend Control: provides the ability to lock individual cards or restrict any type of spending.  
• Capture receipts from anywhere: Reduce or eliminate manual expense tracking.  
• No additional expenses: It has no annual, late, foreign transaction, or replacement fees.  

In summary, Ramp is great for helping to manage your company by reducing manual expense tracking, managing expenses efficiently, and saving money.    

If you value streamlined expense management and cashflow control, Ramp Corporate could be an excellent choice for your brand.    

4. Sam’s Club Business Mastercard  

The Sam’s Club Mastercard is ideal for owners who are Sam’s Club members and make a lot of purchases at Sam’s Club. Here are the key points:  

No Annual Costs: There are no annual fees beyond what you pay for the Sam’s Club Membership.  

Cashback Rewards:  

• 5% per dollar spent on gas anywhere Mastercard is accepted for the first $6,000 spent per year, then 1% thereafter.  
• 3% per dollar spent on Sam’s Club with Plus membership (1% cash back for Club members only) and dining/takeout, where applicable.  
• 1% per dollar spent on other qualifying purchases.  

In summary, the Sam’s Club Mastercard offers Sam’s Cash rewards, no annual costs, and is tailored specifically for Sam’s Club members. If you are a frequent shopper at Sam’s Club then this could be one of the better cards for you.    

5. Office Depot Business Credit Account  

The Office Depot® Credit Account provides convenient financing options for all of your office expenses. Whether you need to upgrade your technology, brighten up your office, or restock your supplies, a few key advantages include:    

Special financing:  

Available when you spend $299 or more. Minimum monthly payments are required.  

Credit Account:  

Save $50 via a statement credit on your first purchase of $150 or more within your first 60 days. Choose low monthly payments or pay in full. Receive itemized billing statements. No annual fee.  

Office Depot provides a wide variety of products and services to help you manage and grow your brand. Whether you need flexible options on payments or prefer to pay in full, the Office Depot Credit Account provides plenty of flexibility to finance your business’s needs.  

6.  The Stripe Corporate Credit Card  

Stripe Corporate is designed for Stripe users, particularly, for fast-growing businesses, and that allows your credit limit to grow along with your company. Here are a few of their selling points:  

Instant Provisioning and Real-Time Management:  

Instantly provision cards for all employees in your company. Manage spending in real-time through the Stripe Dashboard.  

Credit Limits Based on Payment Processing and Bank History:  

Your credit limit is determined by your payment processing and banking history. As your company grows, your credit limit can grow with you.  

Branded With Your Logo:  

Upload your company logo from your Stripe dashboard to customize the card’s appearance. Make it look and feel like your brand.  

Simplified Reward System:  

Earn 1.5% cashback on every company purchase, across all categories. No need to track or optimize points.  

Powerful Expense Management Tools:  

Set custom spend controls including allowed merchant categories and spending limits per cardholder. Real-time expense reporting allows cardholders to text or upload their receipts to match transactions to simplify tracking and reconciliation. Seamlessly integrate with finance software such as Expensify and QuickBooks.  

Stripe Corporate is currently in limited beta for US-based companies and the only requirement to apply is having a Stripe account.  

7.  SVB Innovators Card  

SVB Innovator is uniquely designed to help fast-growing companies meet their needs as they continue to grow. A few of the highlights include:  

Scalable Financing:  

Scalable credit to support your expenses for your growing brand. Earns 2x rewards on everything with no caps that can be used for different purposes, such as cashback or travel.  

Time-Saving Tools:  

Real-time visibility and control over expenses, including policies, through the SVB T&E expense management platform. Integrated Travel & Expense (T&E) tools for automated accounting synchronization.  

Help save the planet with Eco-Friendly Plastic :  

Made with 70% Parley Ocean Plastic®, up-cycled plastic collected from coastal areas, to help prevent plastic pollution from dirtying our oceans. Produced using carbon-neutral protocols supporting positive climate action.  

SVB Innovator is a powerful tool for helping manage your company by streamlining expense management all the while earning great benefits that can be used in a variety of ways to support your growing brand.    

It’s truly designed to scale with your company and support your growth.  

8.  BILL Spend & Expense  

BILL Spend & Expense combines credit cards and free management software to provide real-time visibility and personalized control over your finances. Here are a few of their key features:  

Company Credit:  

Flexible credit for your company. BILL provides physical and virtual corporate cards for workers.  

Expense and Budget Management:  

Free expense management software offers real-time tracking and reporting. Set custom spending controls and policies to manage budgets more effectively.  

Mobile App:  

Empower your team with a user-friendly mobile app for on-the-go transactions. Complete transactions in real time.  

Reimbursements Made Easy:  

Track out-of-pocket expenses and manage reimbursements within the same platform with BILL Spend & Expense.  

Rewards and Integrations:  

Earn rewards on spending. Seamlessly integrate with accounting software like QuickBooks and Sage Intacct.  

BILL is a powerful tool for businesses that combines corporate cards with free management software to easily control, track, and manage your company’s expenses while offering outstanding fraud protection.    

While these no personal guarantee credit cards may help you gradually build better credit, there are also ways you might be able to build credit in 30 days if you’re looking to build your credit faster.  

Who Can Get a Business Credit Card With No Personal Guarantee?  

While these providers offer credit cards with no personal guarantee, not every company will qualify.    

To qualify for credit cards without a personal guarantee, your company will need to meet certain criteria. While the criteria will vary by provider, here are some common requirements:  

1. Established Company:  

You’ll need a legitimate entity (e.g., LLC, corporation, partnership).  

2. Employer Identification Number (EIN):  

Obtain an EIN from the IRS for your company. The EIN serves as your business’s tax identification number.  

3. Good Company Credit and, Perhaps, Good Personal Credit:  

Build and maintain a positive credit history. Pay bills when they’re due, manage debt responsibly, and establish trade lines. Even though a personal guarantee may not be required, your personal credit may factor into your ability to get company credit cards.  

4. Annual Revenue or Sales:  

Some providers require a minimum annual revenue or sales threshold. If required, the amount will vary but it is typically over $100,000.  

5. Number of Employees:  

Certain providers may require a minimum number of workers in your company. This demonstrates stability and growth potential, as well as potential usage.  

6. Company Age:  

Certain providers may look for a certain age of the brand (e.g., two years) to demonstrate growth and stability. New startups may find it challenging to qualify.  

7. Bank Account or Deposit Account:  

Some providers may ask you to use their other services, open a deposit account, or link a banking account to cards. This allows the providers to monitor the health of your company and provides additional security.  

Remember that while no-personal-guarantee credit cards provide less personal risk and may offer many other benefits, please make sure that the credit cards fit the needs of your particular company.    

A no PG card option that does not help you manage and grow your brand will not help you achieve your goals. Sometimes personal guarantee credit cards make sense for your particular situation and company.  

No PG Business Credit Cards vs. Traditional Business Credit Cards  

Let’s explore the key differences between personal guarantee credit cards and traditional credit cards:  

1. Risk and Liability:  

No Personal Guarantee Credit Cards:  

Lower personal risk for the person if the company is not successful.  

Traditional Credit Cards:  

Higher risk for the owner due to personal guarantee.  

If the company defaults, the owner’s personal assets may be at risk.  

2. Credit Limits:  

No Personal Guarantee Credit Cards:  

Typically have lower credit limits than traditional credit cards.  

Traditional Credit Cards:  

Typically have higher credit limits than personal credit cards.  

Consider both personal- and business-related credit factors when determining credit limits   

3. Rewards and Bonus Categories:  

No Personal Guarantee Credit Cards:  

May have reward categories similar to personal cards (e.g., cashback, travel point reward system, etc.).  

May have reward categories specific to company expenses (e.g., office supplies, company services, etc.).  

Traditional Credit Cards:  

May or may not offer rewards, but in general, the reward categories may be focused on business-related spending (e.g., travel, office supplies, etc.).  

In summary, while both types of cards may offer different credit limits and rewards, the key distinction lies in the personal guarantee requirement.  

Build Credit with eCredable  

Opening a no PG business credit card allows you to build better company credit without any personal risk. However, it’s not the only option for building better credit without personal risk.  

Your company is already paying for many service solutions and products and you can utilize those payments and accounts to build better credit risk-free.    

Fortunately, eCredable’s Business Lift program offers an efficient and no personal risk way to build trade credit. For just $19.95 per month, we’ll report an unlimited number of your recurring expenses to Equifax.  

With eCredable, you can report utilities like gas, water, power, and internet, as well as services like marketing, accounting, and web services to credit bureaus.  

Not only will we share your current monthly invoice payments, but we’ll also report up to 24 months of historical activity! That can help you establish years of credit history overnight, which is one of the only ways to improve your company credit scores quickly.  

Sign up for eCredable today and take the shortcut to good credit!  

Shelf Corporations: The Purpose and Risks

Building business credit is incredibly important for new companies because it impacts your ability to obtain financing, favorable loan terms, and low interest rates.

Rather than building credit organically, some business owners try to cut corners by buying a shelf corporation (also known as a shelf company).

In this post, we’ll discuss the fundamentals of shelf corporations, along with the risks, legalities, costs, and more. As we’ll explore later, shelf corporations are risky, potentially fraudulent, and not a recommended practice for building established credit.

We’ll show you a better alternative. It’s one that adds aged business tradelines quickly for a low cost, and it’s 100% legal.

What is the Purpose of a Shelf Corporation?

The reason for buying a shelf corporation is to obtain a business credit history without building it from scratch.

By purchasing an aged shelf company that has had time to mature, it essentially gives you instant credibility, making it easier to apply for business lines of credit or other business financing.

Just as having an extensive personal credit history increases your chances of getting approved for consumer credit cards and loans, it’s the same concept with shelf corporations.

Even if an aged shelf company hasn’t had any business activity or any real bank account assets, the time an existing business has spent “on the shelf” makes it appear more well-established, which is an integral part of getting funding and other business services.

And as FundsNet points out, “Most states require that your company be in business for a specific period of time before applying for government contracts or government contract bidding.”

In short, an aged shelf corporation has more perceived value than a brand-new one, which enhances business credibility. It also gives it more leverage for securing business financing, all while bypassing the heavy lifting that comes with building credit as a small business owner.

Risks of Using a Shelf Corporation

At first glance, shelf corporations may seem enticing. But, there are some serious drawbacks to be aware of when purchasing this business entity.

High Cost

For starters, you’ll have to spend a considerable amount of money to purchase a shelf company trade name.

The exact costs can vary. (As we’ll discuss in more detail later, it’s thousands of dollars.) But regardless of the registered agent you go through, a shelf corp is going to be a significant expense.

If you’re a new business owner just trying to get established, this can be a hindrance to company formation and make it harder to gain financial momentum when growing your business bank account.

Hidden Liabilities

In most cases, whenever you buy shelf corporations, they won’t have any assets or liabilities.

But this isn’t always the case.

While uncommon, there have been instances where someone buys an aged shelf company from a fraudulent vendor where the company has a history of unlawful activities, liabilities, and lawsuits.

If you happen to buy an aged corporation with a history like this, there is no asset protection, and it’s your responsibility to resolve the issues. So if there’s negative history attached to an aged shelf company, it can open a can of worms that you don’t want to deal with.

Prospective Lenders May Catch On

The main reason why most business owners buy shelf corporations is to leverage the credit history and the company name to obtain financing.

But this is highly deceptive and something most lenders are wary of.

If a prospective financial institution discovers that you’ve bought a wholesale shelf corporation with the intention of using it for this purpose, two things will likely happen.

First, they’ll close your business bank account and you’ll lose access to the funds you would have had.

Second, they’ll ban you from applying for future working capital and may notify other financial institutions of the situation.

So, if your primary purpose of buying a shelf corporation is to “corporate credit hack” and manipulate the system, it can easily backfire and hurt you rather than help you.

Legal Risk

Besides creating friction with lenders, there’s also a significant legal risk involved.

“If you buy a shelf corporation with the intent of using it to secure business loans or lines of credit that you would have otherwise not been qualified for, this could be considered crossing the line and could be considered illegal,” FundsNet explains.

The problem is that this is often precisely what business owners are trying to do when buying a shelf corporation business entity.

While this doesn’t directly go against the Corporate Transparency Act, and there’s no guarantee that a lawsuit will arise, it can certainly be a threat to your corporate longevity, and it’s not a risk you want to take.

Are Shelf Corporations Legal?

The simple answer is yes. Shelf companies are legal.

However, most financial experts consider them to exist in a legal gray area, where they can be illegal if they’re used to gain corporate credit the wrong way.

If, for example, you buy a shelf corporation to use it to manipulate the credit system and obtain financing that you wouldn’t otherwise be able to get, it’s considered fraudulent.

And as we just mentioned, this is often the primary reason why business owners purchase a shelf company in the first place.

The bottom line is that shelf corporations are technically legal. But they become illegal when they’re used to deceive lenders and unscrupulously obtain credit lines.  

Also, note that since the publishing of The Panama Papers in 2016, which leaked 11.5 million documents, the terms “shelf company”, “shell company”, or “shell corporation” have been associated with illicit activities like fraud, money laundering, and tax evasion.

For these reasons, aged shelf corporations are something we strongly recommend not getting involved with, even if it’s with a registered agent offering a seemingly respectable shelf LLC.

How Much Does a Shelf Corporation Cost?

Earlier, we mentioned there’s often a high cost when buying shelf companies.

In terms of the specific amount, purchasing this type of business entity typically ranges from $645 on the low end to upwards of $10,000 on the high end.

If you look at a current list of aged corporations that are up for sale from Wyoming Corporate Services, a limited liability company, the lowest is $645 and the highest is $9,795.

Again, the cost of an aged corporation can vary, and another source like a Super Pages listing may be slightly different. But this is about the range in 2025.

Should You Get a Corporation in Wyoming or Delaware?

When you’re interested in purchasing a shelf corporation, you have a myriad of options.

You could get a ready-made corporation for your Nevada corporation, LLC, or S corporation status.

You could get aged shelf companies like a California shelf company. California corporations might work for some, but a California shelf corporation isn’t for every business.

Then, you still have to take care of other things like hiring a registered agent service. Incorporation requires a great deal of work, even when purchasing a shelf company.

Two options worth considering are a Delaware shelf corporation and a Wyoming shelf corporation.

But which state should you choose when shopping for an aged company? A Delaware corporation or an older Wyoming corporation?

Both offer significant tax benefits, are corporation-friendly, and you can move a corporation from one state to the other.

That being said, incorporation in Delaware is more costly. If you want to purchase a Delaware shelf company, you should expect to pay more for these shelf corps. 

Greater credibility comes at the price of:

Corporate Income Tax Rate: 8.7 percent versus 0 percent in Wyoming.

Annual State Fee: $225 annually versus $50 annually in Wyoming.

Incorporation Conversion Filing Cost: $800 to $1,000 versus $500 in Wyoming.

Take care to weigh the pros and cons before committing to one state’s shelf company options to improve your business’s credibility.

How You Should Establish Business Credit Instead

By now, it’s pretty clear that shelf corporations generally aren’t a smart move for a new company looking to build corporate credit.

So how can you responsibly establish business credit without going through an aged entity?

One of the best ways is to use eCredable, which helps you build business credit by reporting your business utility and telecom payments.

It works by linking the business accounts you pay anyway, such as electricity, internet, water, gas, and TV, and reporting your payments to the credit bureaus.

By making payments on time, you can use these accounts to build your business credit in a way that’s similar to reporting credit card payments.

And when it comes to personal credit, this isn’t something eCredable looks at. So, even if your personal credit isn’t great, it won’t hinder your ability to build your business credit profile.

Once you sign up with eCredable Business Lift, we’ll attempt to download up to 24 months of payment history, which can quickly boost your business credit scores.

You can learn more about eCredable Business Lift pricing and get started here.

 

 

 

 

 

 

How to Get an 80 PAYDEX Score  

Dun & Bradstreet’s (D&B) PAYDEX Score is one of the more popular business credit scores among vendors and commercial lenders. Having a score of 80 or higher shows them your business pays its debts on time, if not early, on average. 

And that’s a big part of establishing business creditworthiness and strengthening your business credit profile.   

Here’s a step-by-step guide explaining how to get an 80 PAYDEX score so you can more easily secure funding for your business.  

1. Look for Creditors That Report to Dun & Bradstreet  

Consumer credit bureaus compile your credit history into a credit report, but they let companies like FICO and VantageScore handle your credit score.   

In contrast, commercial credit bureaus play both roles, gathering business credit data and issuing business credit scores.  

Since they’re effectively competitors, the business credit bureaus don’t share their scores with each other.   

You can only get a copy of a business credit score from the business credit bureau that created it, and your score is only ever calculated using that agency's data.  

As mentioned previously, the PAYDEX is a D&B score, which is why the first step to getting an 80 PAYDEX Score is to identify creditors that report to D&B. Only accounts from those issuers will contribute to your DB rating.  

If you’re a relatively new business owner, it’s often best to start by going after vendor tradelines, also known as trade credit accounts. They come from businesses that don't specialize in lending and typically grant you an extended payment term with funding.  

Vendor accounts are easier to qualify for without a significant business credit history. In contrast, financial tradelines, which are accounts from lending institutions like banks or online lenders, usually require at least two years of business history and a good business credit score.  

Furthermore, the PAYDEX score only takes into account payments from vendors and suppliers. So get more of those to boost your score. Dun & Bradstreet says that you need two tradelines with at least three credit experiences for a PAYDEX score to be generated for a business.  

2. Open New Tradelines or Credit Accounts  

Once you have a list of credit issuers that report to D&B, start applying for new tradelines. Just avoid taking on so much debt that it becomes a financial burden. To get an 80 PAYDEX score, you must be able to make each payment on time.  

Though more affordable than a business loan, even vendor tradelines aren’t free. Though they generally don’t carry interest, you’ll still have to make regular purchases to build your payment history.  

Try to open vendor tradelines with businesses that offer products or services you already need. That way, using your credit account will do more than just build your business credit.  

Once you’ve established a positive payment history with three to six vendor tradelines, you can start thinking about opening financial tradelines.   

Typically, business credit cards that report to D&B are your best bet since those are easier to secure than business loans or revolving lines of credit.  

You may be able to start securing financial tradelines even sooner if you have a good personal credit score and apply with your Social Security Number (SSN). However, that usually requires that you personally guarantee your company’s debts.  

3. Make On-Time or Early Payments  

Payment history is the most impactful scoring factor in most business and personal credit scores. However, it’s especially significant to the PAYDEX Score, which is just a dollar-weighted measure of when, on average, you pay your bills.  

If you’re wondering how to get 80 PAYDEX score, being prompt with payments is a key part of the process.  

Here’s how it works:  

PAYDEX Score	Dollar-Weighted Average Payment Date
100	30 days early
90	20 days early
80	On the due date
70	15 days late
60	22 days late
50	30 days late
40	60 days late
30	90 days late
20	120 days late
1–19	More than 120 days late

Because the PAYDEX uses a dollar-weighted average, monthly payments of higher amounts have a more significant impact on your score.   

For example, making an early payment of $2,000 toward a business loan will help your score more than a prompt payment of $200 to your fleet card.  

The easiest way to get an 80 PAYDEX Score is to make all your monthly payments on time. However, if you make a late payment, you can recover faster by making future credit card and other payments as much as 30 days early.  

4. Keep Your Credit Utilization Low  

Your credit utilization is the ratio of your outstanding debt to your credit limit. For example, if your business credit card has a $10,000 balance and a $25,000 credit limit, you have a 40% utilization rate on that account.  

While your borrowing percentage doesn’t directly impact your PAYDEX Score like your personal FICO Score, it’s still a good practice to keep yours relatively low. There are other business credit scores that do reward low credit usage. High credit usage is a red flag to lenders for a reason - it tends to correlate with financial distress.  

Additionally, this can impact your financial stress score, which is another key indicator of your company’s financial health.  

After all, the higher your borrowing ratio on a revolving credit account like a credit card, the harder it is to pay back what you owe.   

Additionally, if you carry a balance from one period to the next, you’ll incur significant interest costs. That can snowball quickly, especially when you’re juggling multiple accounts.  

If you’re more interested in building business credit than financing your purchases, the safest approach is to keep your debt balances below your cash reserves.   

That way, you can always afford to make your monthly payments, even if you start having cash flow issues.  

Remember, your PAYDEX Score is all about the timeliness of your payments, so you can’t afford to overextend yourself. Paying late or defaulting on an account could set your progress back significantly.  

5. Don’t Mix Personal and Business Credit  

Your business credit is technically separate from your personal credit, but it’s surprisingly easy to muddy those waters. While that’s not necessarily the end of the world, it can often have negative consequences.  

For example, some of the problems you may encounter when mixing your personal and business credit include:  

Messy financial records: If you use the same accounts for personal and business activities, it can become challenging to determine which transactions belong in which category. That can cause headaches when you need to do something like analyze your business’s financial performance or file your tax returns.  

Personal liability for business debts: When you open a business credit line with your SSN and consumer credit score, you often give the lender the right to pursue your personal assets if you fail to make your payments and default.  

Risk to your personal credit scores: Business tradelines typically don’t appear in your personal credit reports if you keep them in good standing. However, many creditors report negative activity on a personal credit report, especially if you sign a personal guarantee.  

To prevent issues like these, keep your personal and business credit as separate as possible. Avoid signing personal guarantees whenever possible and try to apply for vendor and financial tradelines in your company’s name, not your own.  

Keeping your personal and business credit separate isn’t strictly necessary to get a good DB PAYDEX Score, but it’s still highly beneficial.  

6. Dispute Any Inaccurate Information  

Errors in your business credit report aren’t as rare as you might think, and they can have a direct impact on your PAYDEX Score. Even a single incorrectly reported payment date could bring down your average timeliness significantly.  

Fortunately, while the protections in the Fair Credit Reporting Act (FCRA) generally extend to consumers and not businesses, you can still dispute inaccurate information in your business credit reports. It’s just not quite as streamlined a process.  

Here’s how you can fix the information in your D&B business credit report:  

Visit D&B DUNS Manager: Before you can update your D&B credit report, you need to find your company in its system, the DUNS Manager. Search using your business’s name and address. If you see your company in the search results, move on to the next step. If not, request a new DUNS Number to start a new credit report with D&B.  

Verify your identity and business association: Before you can update your business’s information, you have to prove your identity and show that you’re an owner, director, or officer of the company in question.  

Request updates to your company’s information: Once D&B has accepted your identity and business association, you should be able to request updates to your company’s identifying information, upload financial statements, and dispute any "payment experience" that appears in your business credit score.  

In addition to using the free DUNS Manager portal, you can purchase D&B’s CreditBuilder service for $149 per month. Its benefits include the ability to manually submit up to 12 trade references to your D&B report.  

Both of these options have the potential to help you fix errors in your credit report, but there’s no guarantee that D&B will agree with or accept your update requests.  

Tips for New Businesses  

If you’re a new business owner, here are some additional tips to keep in mind as you start building business credit for the first time.  

Understand and Apply for a DUNS Number and EIN  

If you want your business to qualify for bank funding on its own someday, you must establish it as a separate entity. A DUNS Number and Employer Identification Number (EIN) are both essential to that process.  

A DUNS Number is a nine-digit number D&B uses to track your business in its system. D&B may assign one automatically if a vendor or lender requests information about your company, but if not, you must request one to start your D&B business report.  

Similarly, an EIN is a nine-digit number that the Internal Revenue Service (IRS) uses to identify your company for tax purposes. It’s like an SSN for your business, and you can use it to apply for business credit in your company’s name.  

Fortunately, you can request a DUNS Number and EIN for free online:  

Claim Your Free DUNS Number  

Apply for an Employer Identification Number  

In both cases, you’ll need to provide identifying information about your business, such as its legal name, address, and structure. It can take up to 30 business days to get your DUNS Number, but you should see your EIN immediately after completing the process.  

Monitor Your Business Credit Scores  

Unlike consumers, the FCRA doesn’t grant businesses the right to access their business credit scores for free. As a result, you typically have to pay to get a copy of your PAYDEX Report.  

That said, it’s still well worth doing to make sure your progress aligns with your expectations. If you see your PAYDEX drop for no apparent reason, you may have missed something, or there could be an error in your D&B credit report.  

You can access your DB Scores directly from D&B, but it’s relatively expensive. D&B requires you to purchase one of its subscriptions, the cheapest of which costs $49 per month. Of course, it comes with additional benefits, including other business scores.  

However, if you’re only interested in your PAYDEX, the cheapest option is credit monitoring company, BusinessCreditReports.com, which offers a copy of the score a la carte for $5.95.  

Or if you’re looking for something a bit more robust with other business credit bureaus, another option is CreditSuite. 

If you’d like to reference this guide offline, we’ve included a printer friendly page for your convenience. And you can also check out our recent posts for related content.  

Build Business Credit Faster With eCredable  

Building good business credit is traditionally a lengthy endeavor that requires a significant investment of additional capital. However, you can significantly reduce the time and money it takes by using eCredable.  

Our Business Lift program lets you report the recurring expenses you’re already paying, like utility bills and certain supplier account payments, to Equifax and Creditsafe as vendor tradelines.   

In addition to ongoing payments, it also includes up to 24 months of historical payments, which can help you build years of business credit history virtually overnight.  

We’ll also report your eCredable subscription payment to D&B and other business credit bureaus, which has been known to help companies get up to a 40% higher score in the first three months! Sign up for eCredable today and take the shortcut to better business credit.  

Tillful Review 

Secured Business Credit Card 

Tillful is a fintech company that helped businesses understand their business credit score, find business credit solutions, and previously offered its own secured business credit card.  

The Tillful secured business credit card was the highlight of the business. They reported to one major business credit bureau and helped businesses build credit.  

While the Tillful card may no longer be a viable choice, you have other options.  

You can build business credit today with the support of eCredable.  

Tillful Overview 

Tillful was a financial company in the United States that was dedicated to helping business owners better understand their credit.  

They offered business owners a free Experian credit score check. Aside from credit monitoring, they also helped users learn more about their credit and financial health with their own credit report and scoring systems.  

But arguably the primary highlight of Tillful was its financial services. Tillful offered its own secured credit card. They helped users find other credit cards for financing too.  

The Tillful site is still up, but the company itself has since gone bankrupt. They were purchased by Nav, who offers many of the same services.  

The Tillful card was supposed to be continued by Nav in the form of the Nav Secured Card. However, this was discontinued by Nav soon after.  

What can you use to build business credit rapidly?  

One solution for bad credit or non-existent business credit is eCredable.  

eCredable isn’t a secured business credit card like Tillful.  

Instead, it helps you build credit by reporting business expenses as tradelines.  

The first form of support comes from your subscription. Whether you choose eCredable Business Lift or Business Lift+, each monthly payment is reported as a tradeline to Dun & Bradstreet, Equifax Business, and Experian Business.  

But that’s not all that eCredable offers. Whether you have business utilities, a dedicated business phone line, or other business expenses that aren’t being reported, eCredable will help you report these recurring expenses to Equifax.  

This helps you build business credit and credit history quickly. 

Tillful may no longer be around to help you access funding and build your credit score. But there are plenty of options like eCredable to help you build business credit with ease.  

Tillful Pros 

Reports to One Major Business Credit Bureau 

The first thing to address in this Tillful review is business credit reporting. 

The Tillful secured business credit card was a decent option because it reported to one business credit bureau: Experian.  

This makes sense as they used the Experian Intelliscore (alongside the Tillful score) to tell you about your business credit standing. 

Business credit builder cards are only effective if they offer reporting effectively. Some credit cards may only report to one business credit bureau and one that isn’t considered a top option.  

This won’t help you build your credit score rapidly. 

Tillful did report to one of the top three, which meant that building business credit would have been possible. The only way they could have improved their business credit card was by reporting to the other two: Dun & Bradstreet and Equifax.  

It was rumored that they may have been adding those to their reporting activity later on. However, given that the company has shuttered and Nav has discontinued the card, we’ll never know. 

1.5% Cash Back on All Purchases 

You don’t need to have rewards on a credit card to build your business credit score. However, that doesn’t mean that it isn’t a nice bonus that comes with your new financing asset. 

Like most credit cards, the Tillful card did offer cash back. Specifically, they offered 1.5% cash back on all eligible purchases. This was a nice bonus alongside their other various services like getting your free business credit score. It gave any small business plenty of support. 

What people might not have known at first glance was that Tillfull offered more than just that though.  

This was a card that offered a 0% APR, which is impressive. There are some fees that were associated with the card, but these were fairly standard.  

These included:  

• A $10 monthly inactivity fee 

• Late payment fees 

• Merchant fees ranging from 1.15% to 2.50% 

• Foreign transaction fees 

Overall, it’s easy to see why Tillful was a popular choice for business owners. Alongside building business credit, there were many benefits associated with the Tillful card.  

But it wasn’t perfect by any means. There were some drawbacks to opening an account that business owners should have considered before applying.  

Tillful Cons 

$500 Security Deposit 

This was a secured credit card.  

No matter what, you should automatically know you’re going to have to pay a security deposit to open a secured credit card.  

It’s not desirable for the average small business. This is especially true when you have other options like corporate cards. They don’t require a deposit at all to tap into funding and build business credit.  

They also don’t require personal information like your personal credit score or personal guarantee, like Tillful. 

Tillful required a $500 minimum security deposit to begin using their card and establish payment history. $500 isn’t a lot. Some secured business credit cards require $1,000 or more.  

But you could build credit without having to deal with all the restrictions as well. You could easily approach tier 1 business credit vendors and get higher limits without any fees or other drawbacks.  

Tillful teaches an important lesson. Even though a credit solution is accessible or popular, you shouldn’t automatically spring for it. There might be alternatives worth considering that could give you the same credit-building benefits and better terms to boost working capital.  

This might include financing solutions offered by a lender, credit services, or something else entirely. 

You should always attempt to build your credit score with the least amount of hassle.  

You Can’t Carry a Balance 

When you think of a credit card, what’s the first thing that comes to mind? If you thought of a small business card you could use and pay back as you see fit, you’d be entirely correct.  

After all, credit utilization can play a role in your credit score and financial health.  

Remember how we said that the Tillful credit builder card came with 0% APR earlier? That comes with a caveat when you apply for this form of funding.  

There’s no APR because of the fact that you’re unable to carry a balance with this card.  

Whatever you spent, you would have to pay back within 30 days.  

At that point, it’s more akin to charge cards and net 30 accounts than traditional business credit cards. That doesn’t mean that it wouldn’t have been a desirable option for some business owners. It’s also not a red flag that indicates it’s a bad financing option. 

However, not being able to carry a balance is a drawback that requires serious consideration.  

Final Thoughts on Tillful 

Tillful was a company that helped business owners learn more about their credit and build it.  

Their secured business credit card made it easy for businesses to improve their business credit score. 

With account benefits like 1.5% cash back on eligible purchases, limited fees, and 0% APR, there was a lot to like about Tillfull. Every purchase was reported to Experian. This was also the bureau they used to provide you with your credit score. 

However, the Tillful credit account did come with some drawbacks. Most notably, you were unable to carry a balance with your card. You had to spend at least $500 to tap into a credit-building tool and funding as well.  

Tillful was a solid choice for those who needed a credit card to help raise their credit score. But today, you have a host of credit-building options at your disposal.  

Build Business Credit With eCredable 

eCredable is dedicated to helping you minimize your expenses and build your credit quickly.  

eCredable’s Business Lift subscription reports payments to multiple business credit bureaus. There is no security deposit, like with a secured business card. And you can get multiple tradelines reported to the business credit bureaus. 

All of this costs significantly less than the minimum security deposit of most secured business credit cards. 

Join eCredable now to begin your business credit journey! 

Nav Review: Is Nav Worth It in 2025? 

Nav’s platform is designed to help small business owners manage their business and personal credit, organize their finances, and secure funding to grow their operations.  

This comprehensive Nav review breaks down its various subscription options to help determine which, if any, is right for you. 

Free Nav Account 

The free Nav account grants you access to the most basic version of the platform’s features, including its credit monitoring services, business checking account, and financial product marketplace. 

Basic Credit Monitoring 

Nav’s free credit monitoring services provide limited access to your business credit data from Dun & Bradstreet (D&B), Equifax, and Experian, plus your personal information from Experian and TransUnion. 

After signing up and connecting Nav to each credit bureau, you can see high-level summaries of your credit reports and “credit grades.” These help you estimate your credit score by assigning you a rating between A and F based on your credit history. 

In addition, you’ll receive a notification whenever there are significant changes to your business or personal credit reports, such as new credit inquiries, tradelines, or late monthly payments. 

Otherwise, the information you get is fairly generic, like simple explanations of the factors that affect credit scores. As a result, Nav’s free credit services are best for a quick check of your creditworthiness and basic protection against identity theft. 

Business Checking Account 

Nav’s free account also lets you open a business checking account through Thread Bank. The account isn’t anything special, but it has most of the basic features and benefits you’re likely to want, including: 

• No monthly maintenance fees 

• No minimum balance requirements 

• Free debit card for business purchases 

• $3M in FDIC insurance coverage 

• Up to two subsidiary accounts to help organize activities 

• Free domestic ACH transfers 

• Insights into income, expenses, and balance trends 

• Withdrawals at 55,000 ATMs in the U.S. 

If you don’t already have a bank account for your business, the Nav business checking account is as good an option as any for separating your business and personal finances and setting your company up to build credit. 

Basic Cash Flow Management 

Separate from Nav’s checking account is its cash flow management tool, called Cash Flow Health. At the free tier, it lets you keep track of your account balances and expenses, as well as make simple financial projections to help avoid potential shortfalls. 

It’s essentially a basic form of bookkeeping software that connects to your bank accounts and credit cards to provide a consolidated view of your finances. However, you have to upgrade to a paid plan to access its most useful features. 

Personalized Marketplace Picks 

Nav’s platform includes a marketplace where you can explore and compare various providers of financial products and services, including credit accounts, insurance plans, payroll management, and tax preparation. 

You can access this marketplace without a free account, but sign up for one and Nav will provide personalized recommendations using your business profile and credit data.  

For example, it may suggest a business credit card you’re likely to qualify for based on your time in business, annual revenue, and credit history. 

Nav Prime Tier 1: Monitor Scores 

The first tier of Nav Prime—the platform's paid subscriptions—costs $39.99 per month. Alternatively, you can pay $95.97 quarterly and save 20%, effectively reducing your monthly cost to $31.99. Here’s what you get for upgrading from the free account. 

Detailed Credit Monitoring 

If you’re serious about tracking your business credit, the first Nav Prime tier is probably the lowest you’ll want to consider. It’s a significant upgrade from the free account, which only shows summaries of each credit report and approximations of each credit score. 

When you sign up for Nav Prime, you unlock detailed credit reports and scores from the three major business credit bureaus, plus your full personal credit reports and FICO scores from Experian and TransUnion.  

Nav states it could cost you as much as $300 per month to access all of that information elsewhere. 

You’ll also receive more comprehensive credit monitoring services and additional insights into the credit scoring factors limiting your scores, helping you determine the most efficient path to improvement. 

Nav Prime Tier 2: Boost Credit 

The second Nav Prime tier costs $49.99 per month or $119.97 billed quarterly, which works out to $39.99 per month. Here’s what it has to offer. 

Business Tradeline Reporting 

At the second tier, Nav Prime starts helping you build business credit directly. Subscribing grants you access to two additional tradelines, including one vendor and one financial tradeline. 

The vendor tradeline comes from your subscription to the platform itself. Whether you pay monthly or quarterly, Nav will report your payments to the business credit bureaus, helping you establish a positive payment history. 

The financial tradeline comes from the Nav Prime Card, an easy-approval charge card. There are no revenue, security deposit, or time-in-business requirements, and you don’t have to undergo a personal credit check or sign a personal guarantee. 

Nav simply requires you to connect a bank account, which it’ll use to determine your daily credit limit.  

The more funds and activity in the account, the higher your limit. At the end of each day, Nav automatically deducts your business credit builder card balance from the linked account. 

Nav reports both tradelines to all three major business credit bureaus, including D&B, Experian, and Equifax. If you’re already subscribing to the credit monitoring services, paying a little more per month for the additional tradelines is likely worth it. 

Read our list of the best Tier 1 Business Credit Vendors for more vendor tradeline opportunities to consider. 

Expanded Cash Flow Management 

At the second Nav Prime tier, you also unlock the platform’s full bookkeeping features, making the cash flow management tool more functional.  

In addition to tracking your account balances and expenses, it will automatically categorize all transactions and generate profit and loss statements. 

However, Cash Flow Health isn’t as robust as true accounting software. It doesn’t function as a general ledger and can’t generate other financial statements, such as the balance sheet or cash flow statement. 

Nav Prime Tier 3: Credit Coaching 

At the third and highest tier, Nav Prime membership costs $74.99 per month or $179.97 billed quarterly, which equals $59.99 per month. Here’s what it gets you. 

Dedicated Credit Coach 

Nav Prime’s top subscription tier connects you with one of the platform’s credit-building experts, who will provide you with personalized guidance and support. For example, they may be able to: 

• Refine your long-term credit strategy 

• Review and explain credit reports in detail 

• Identify quick-win opportunities for score improvement 

• Create action plans for addressing negative items 

• Provide guidance on financing applications 

• Offer industry-specific credit building advice 

If you’re unsure how to approach building business credit or are facing a particularly complex situation, working with one of Nav’s coaches may help you avoid potential pitfalls and reach your goals more efficiently. 

FICO SBSS Access 

Nav saves its most unique benefit for last. Its highest tier also grants you access to your FICO Small Business Scoring Service (SBSS) score, which is the credit score a lender must use when screening you for a Small Business Administration (SBA) loan. 

Nav is one of the only ways a small business owner can check this credit score. If you’re interested in SBA funding—one of the most favorable types available—knowing your SBSS score can be invaluable, likely making this subscription tier worth it. 

Combine Nav With eCredable for Better Business Credit 

Nav’s platform offers powerful business credit features, especially if you subscribe to one of its paid plans. They can provide unique insights into your business credit and two distinct tradelines at all three major business credit bureaus. 

However, Nav typically won’t be enough to reach your credit goals on its own. To qualify for high-value lines of credit and business loans, you should aim to have multiple, diverse tradelines with long, robust payment histories. 

One of the best ways to flesh out your business credit report is with eCredable. Our Business Lift program lets you report an unlimited number of recurring expenses, such as your internet, TV, and utility bills, to the business credit bureaus as vendor tradelines. 

In addition to your ongoing payments, that includes up to two years of historical activities, which can quickly make significant improvements to your business credit scores. 

In fact, our customers see an average increase of 32 points in their scores at each participating business credit bureau. To top it off, like Nav, we’ll also report your eCredable subscription payment to give you an extra boost. 

Sign up for eCredable today to reach your business credit goals faster. 

7 Best Startup Business Loans Using Only an EIN Number 

Startup founders often need business loans to accomplish their goals, whether that’s to generate working capital or purchase essential equipment. Unfortunately, many loans require a personal credit check, which you may prefer to avoid because you: 

    - Have a bad credit score 

    - Don’t want to take on personal liability 

    - Wish to avoid adding a hard credit inquiry to your personal credit report 

Let’s explore the best startup business loan options you can apply for using only an Employer Identification Number (EIN) to help you get financing without involving your personal credit. 

The Best Startup Business Loans Using Only an EIN Number:

1. Invoice Financing 
2. Merchant Cash Advances 
3. Online Business Loans 
4. Net 30 Accounts 
5. Loans From Family and Friends 
6. Borrow Against Your 401(k) 
7. Gas Cards & EIN-Only Corporate Cards 

1. Invoice Financing 

Unsurprisingly, invoice financing is a type of business funding that involves borrowing against outstanding invoices. Credit checks typically aren't involved in the process, personal or otherwise.  

As long as you’re a small business with valid invoices, you can qualify for this business loan.  

Though invoice financing arrangements vary in structure between creditors, here’s how they usually work:  

Your small business provides a product or service for a customer and sends them an invoice. However, the customer has a substantial amount of time to pay off their balance because you’ve granted them net 30 or other extended repayment terms.  

Unfortunately, that means you won’t get paid for your product or services for weeks, if not months. That can be detrimental to your company’s cash flow, especially if you incur material or labor costs too.  

Instead of waiting to get paid, you can bring your outstanding invoices to an invoice financing lender. They’ll give you a business loan for a significant percentage of the invoice value.   

When your customer pays you off their invoice, you use the funds to pay off your principal balance plus a financing fee. 

Though terms vary with this financing option, you can usually expect to receive a loan for 70% to 100% of your outstanding invoices and pay a fee between 0.5% and 5% of their value.   

For example, Clarify Capital offers 100% of the invoice value and charges 0.5% per month for the loan’s outstanding balance.  

2. Merchant Cash Advances 

Merchant cash advances are one of the easiest business loans to qualify for, at least in terms of credit requirements.   

Lenders primarily care about your revenue and time in business and are often willing to overlook a bad business credit score if they check it at all.  

Like traditional installment loans, merchant cash advances provide a lump sum upfront.  

However, instead of paying off the balance in monthly installments as you would with a traditional loan that’s deducted from your business bank account, you have to agree to automatic daily or weekly deductions from your credit and debit card sales.  

These advances tend to pay out quickly, but they’re also more expensive than other business financing options. As a result, business owners should generally only use them as a funding option when they have no alternative.  

Merchant cash advance financing costs are based on a factor rate that ranges from 1.1 to 1.5. You multiply your factor rate by your advance amount to get the total amount you owe.  

For example, MCashAdvance offers merchant cash advances to any small business that meets the following requirements:  

• At least six months in business  
• Monthly credit card sales of at least $7,500  
• Minimum FICO credit score of 550 (soft pull only)  

If you qualify, you could borrow between $5K and $900K with a loan term of up to 18 months. Factor rates range from 1.1 to 1.5, and funding times are between one and three days.  

If you borrowed $50K from them at a 1.35 factor rate, you’d have to repay $67.5K.  

3. Online Business Loans 

Traditional financial institutions have the most rigorous underwriting requirements, often requiring you to have a strong personal credit history, business credit, and financials.   

If you’re a new small business owner, you probably won’t be able to qualify for this type of small business loan.  

Fortunately, small business loans from online lenders are more accessible and provide many of the same benefits to startups.   

They’re more expensive and have shorter repayment terms, but they still offer relatively affordable long-term financing, and you can often qualify without good personal credit.  

For example, the minimum personal credit score for a small business loan from OnDeck, a popular online lender, is just 625.   

However, its loans have an average interest rate of 55.8% APR and give you no more than 24 months to pay back what you owe.  

In contrast, Bank of America, a traditional lender, offers interest rates as low as 7.5% APR, and your unsecured business loan can remain outstanding for as long as 60 months.  

However, your personal credit score must be at least 700 to qualify for this small business loan. 

4. Net 30 Accounts 

Unlike a traditional business loan, a net 30 account is a vendor business line, which means it’s a credit account from a company that doesn’t specialize in issuing credit to small business owners.  

For example, you might get this type of business line from an office supply company.  

Unfortunately, only the issuing vendor will accept payment through them. You can’t use a net 30 to buy from other companies like you would with a business credit card, corporate card, startup loan, or business line of credit.  

Net 30 accounts are named for the amount of interest-free financing they provide. They grant you 30 days to pay off your balance before interest accrues, which can help your cash flow and are perfect for raising business credit scores.  

Fortunately, many net 30 accounts don’t check personal finance. If you have a sufficient business credit history, you should be able to qualify with your Employer Identification Number only.   

For example, you can get a net 30 account from Creative Analytics with no personal guarantee or credit check. 

If you’re interested in this type of business loan, check out our list of net 30 accounts for some of our favorite options.  

5. Loans From Family and Friends 

Borrowing from your personal network is one of the best ways to finance your startup without using personal credit or undergoing a hard credit check. Your family and friends are often more inclined to lend to you than a professional creditor.  

Of course, the viability of this option depends on who you know, their perceptions of you, and the strength of your relationships. However, getting a personal loan from people who care about you is well worth pursuing if you can swing it.  

Not only can you secure the funds you need more easily than you would otherwise, but you can also get better terms than you would from lenders like banks and credit unions.  

After all, it should be much easier to negotiate things like interest rates, repayment terms, and monthly payment amounts.  

Whatever agreement you come to, make sure to get everything in writing. Mixing business and personal affairs can be risky, but conducting everything as professionally as possible should help preserve your relationships.  

To keep things organized and professional, set up a separate business bank account to efficiently manage transactions and repayments. 

6. Borrow Against Your 401(k) 

You might think of your 401(k) as a resource you can’t touch until retirement, but that’s not necessarily true. Yes, taking withdrawals before you're 59½ is expensive and generally inadvisable, but borrowing against it works differently.  

Early withdrawals from your 401(k) trigger an immediate 10% penalty. In addition, you have to pay ordinary income taxes on the amount.   

However, taking out a 401(k) loan doesn’t cause you to incur either expense. Usually, you need only pay back what you withdrew plus interest within five years.  

Because you’re borrowing from yourself and not a lender, there’s no need to undergo a credit check. In addition, defaulting on your account won’t affect your credit since there’s no creditor to report your activities to a credit bureau.  

All that said, 401(k) loans are risky. If you can’t pay what you owe on time, the Internal Revenue Service may reclassify your loan as an early withdrawal. If so, you’d be on the hook for ordinary income taxes and the 10% penalty.  

Not to mention, you’d miss out on the tax-free dividends and appreciation you would have earned on your money if you’d left it invested in your 401(k). When it’s time to retire, you may have much less to support yourself than you would have otherwise.  

7. Gas Cards & EIN-Only Corporate Cards 

Typically, business credit card issuers require your Social Security Number (SSN) when you apply. They like to check your personal credit score, which makes it hard to get most business credit cards with your EIN only.  

However, gas cards and corporate cards are an exception. They’re designed for larger organizations, and you can often qualify for them without supplying your SSN if you’ve established your business as a separate entity.  

Just note that some companies require you to link to your company bank account for automatic payments.  

Gas cards, also known as fleet cards, provide discounts at certain gas stations and software to help you manage a team of drivers.   

For example, AtoB cardholders save 42¢ per gallon on average at stations like Petro or Speedway and can use its Driver Pay features to streamline payroll to their fleet.  

Meanwhile, corporate cards are ideal for large corporations with many employees and significant annual revenue. They let you issue subsidiary credit cards to your workers, which you can use to track and limit their spending.   

In addition, they usually provide a small amount of cash back on general, day-to-day purchases.  

For example, Ramp comes with enhanced accounting functions like automatic expense categorization. It also lets you and your employee cardholders earn unlimited 1.5% cash back on all purchases.  

You can apply for both AtoB’s and Ramp’s credit cards with your Employer Identification Number only. Check out our list of tier 2 business credit vendors for other great options. 

Two Types of Financing That Are NOT Good for Startups Only Using an EIN  

We wanted to include these on the list because of common misconceptions. These two types of financing require new startups to have their personal credit checked. 

1. Business Credit Cards  

Business credit cards are excellent tools, and all business owners should have one in their back pocket. They can help you separate your business transactions, earn cash-back rewards, and get a month of interest-free financing on day-to-day spending.  

Additionally, business credit cards tend to have much higher credit limits than personal credit cards, so you can often use them to cover all your monthly expenses. Their flexibility makes them an invaluable form of business financing.  

Not to mention, they can help increase your business credit score when used responsibly.  

Unfortunately, as we mentioned in the previous section, business card issuers typically require you to give them your SSN. Few let you apply with your EIN only, especially if you’re a new startup founder without much business credit history.  

If you want to keep your personal and business credit separate or avoid undergoing personal credit checks, wait to apply for business credit cards until you’ve established business credit through other means.  

For example, you should have an easier time getting business credit cards using your EIN only once you’ve built a positive payment history with over a dozen vendor tradelines.  

2. SBA Loans  

The Small Business Administration (SBA) generally doesn’t provide financing directly, but it does guarantee business loans for certain lenders. If you default on those accounts, the SBA still pays the lender a significant portion of the principal balance.  

Because this type of business loan is less risky for the lender than other types of business funding, these SBA loans provide some of the best terms available. They often have the lowest interest rates, highest borrowing limits, and lengthiest repayment terms.  

For example, you can qualify for as much as $5 million through the SBA’s 7(a) term loan program.   

Your interest rate will be no more than the prime rate plus 3% to 6.5%, depending on how much you borrow, and you can have up to 25 years to pay off your loan.  

Unfortunately, you generally can’t apply for an SBA loan with an EIN number only.  

The SBA’s eligibility requirements include having a good personal credit score, so you must provide your SSN and have your personal credit checked to apply for this type of business loan. 

How eCredable Can Help You Build Business Credit  

To qualify for startup business loans using an EIN number, you must have an established business credit profile.  

Otherwise, lenders will almost always require that you provide your SSN and check your personal credit on a loan application to assess your creditworthiness.  

While building your business credit score is usually a slog, eCredable can help you fast-track the process and save money! Instead of spending your precious time and capital applying for dozens of net 30 accounts, sign up for our Business Lift program.  

We can report an unlimited number of your existing expenses to the business credit bureaus, automatically transforming them into vendor tradelines. In addition to your ongoing payments, that includes up to 24 months of payment history!  

As a result, you can build years of business credit history overnight without undergoing a personal credit check or taking on additional debt payments. All you’ll need to pay for is our $19.95 monthly subscription, which will also appear in your credit report!  

Sign up for eCredable today and take the shortcut to good business credit! 

How Long Does it Take to Build Business Credit?  

While building a robust business credit report can take as long as three years, most new companies can achieve a top-tier business credit score in 12 months.    

If you’re interested in learning more about building business credit fast, read on.    

How Fast Can I Build Business Credit?  

Establishing business credit depends on numerous factors, and no set amount of time applies to every business across the board.   

That said, if you do everything right, follow best practices, practice proper credit utilization, and stick to responsible business financial management, you should become relatively creditworthy in a year.   

Note that your business credit profile will still likely be thin for many lenders, and most will want to see a longer payment history or larger credit limits before deeming you eligible for large business loans.  

But you should be able to reach a point where your business credit profile allows you to qualify for adequate financing to gain momentum.   

As we just mentioned, it often takes as long as three years to build serious business credit where you’re eligible for high credit limit loans and can get perks like low interest, minimal fees, and no personal guarantee.   

But one year is a reasonable time frame to achieve a high enough business credit score to be eligible for certain small business loans and business credit lines.   

Therefore, if you’re a new small business owner just getting established, you’ll need to have patience and set realistic expectations about building your credit history.   

You’ll also need to follow the fundamentals of business credit building, which we’ll discuss later.   

Other Business Financing Factors  

One of the biggest factors lenders look at is how long you’ve been in business.   

A typical lender will want you to have been around for at least two years before offering a small business loan.   

Another factor is company revenue.   

“The bare minimum annual revenue for funding from a traditional lender, like a bank, is $100,000, though most lenders set higher requirements,” Bankrate explains.   

That said, Bankrate notes that alternative lender options are also available that may offer financing to businesses with annual revenue as low as $33,000.   

Next, there are company assets, such as real estate, property, equipment, inventory, and outstanding invoices. These can all serve as collateral to secure a business loan and give a lender security in case of default.   

Finally, there’s your industry code, which identifies what type of business you operate and the sector you’re in.   

The North American Industry Classification System (NAICS), for instance, uses 5 or 6-digit codes that let lenders quickly assess risk levels.  

Businesses in online retail or consulting would be examples of low-risk industries because they’re not as prone to economic volatility or intense regulations.  

Those in firearms or online gambling would be examples of high-risk industries because of ever-changing regulations.  

Set Business Credit Goals  

A critical precursor for reaching a strong business credit profile is having clear goals of what you want to achieve.   

This often starts by figuring out what type of financing you want for your business expenses.   

A business credit card, for example, is usually easier to get than a bank credit line.  

So, if you’re a new business owner, you may want to focus primarily on generating cash flow through a credit card during the initial stages of building business credit and using smart credit utilization.   

Then, as your business matures over time and you reach a higher business credit score, you could move on to trying to secure a bank business line or an SBA loan.   

As long as you’ve practiced responsible financial management and have a good credit score, you’ll also likely qualify for a credit card with better terms.   

Besides that, you’ll want to thoroughly research the guidelines for each type of loan so you know what the eligibility requirements are, the terms and conditions, the application process, and so on.  

Also, create a realistic timeline for reaching your business credit goals.   

Be sure to consider how long it takes to build enough credit to become eligible, know what specific actions are required to obtain funding, and what variables may affect your timeline.   

This should put you on a positive trajectory for establishing a positive business credit history.     

How to Speed Up Business Credit Building   

There are four main ways to achieve a good business credit score quickly while also avoiding bad credit pitfalls.   

Apply for Lots of Business Credit Vendors  

One of the quickest ways to build business credit is to get financing from vendors that report to major business credit bureaus like Dun & Bradstreet, Experian, and Equifax or a members-only credit reporting agency like the Small Business Financial Exchange.   

Like succeeding in many areas of business, it’s a bit of a numbers game.   

The more business credit vendors you apply to, the more likely you are to get funding to cover each major business expense and the quicker you can build business credit.   

Note that you’ll ideally want to focus on vendors with shorter terms like net-30, as they tend to report to credit bureaus quicker than those with longer net terms like net-60 or 90.   

Make Payments Early   

Just like payment history plays a huge role in determining your personal credit, the same is true with your business credit profile.   

After all, one of the main things business credit reporting agencies look at when assigning a business credit score is payment history.   

At the bare minimum, you’ll always want to make a timely payment to each lender for a credit card, loan, revolving credit, or any other type of business finance.   

However, going one step further and making payments early is even better.   

In fact, Dun & Bradstreet only gives perfect scores to companies that pay early.   

Leverage Your Personal Credit   

Although your personal credit score is different from your business score and can’t be used to determine eligibility for all types of business funding, many lenders will look at it.   

“This is especially true for sole proprietors or new businesses that haven’t established business credit,” writes Bankrate.   

If, for instance, you have a solid personal score, you may be able to leverage it to qualify for a business credit card that reports to business credit bureaus.  

To quantify, a personal credit score of 680 or higher should usually be sufficient. And if you have a score of 740 or higher, you can likely get favorable terms on a credit card or business credit line.   

If you have a poor personal credit report, you’ll want to work on improving it because, in addition to enhancing your personal credit history, it can also help open doors for your business and put you on your way to achieving solid business credit.   

Use eCredable’s Past Payment Reporting Feature  

Finally, you can use a tool like eCredable Business Lift to report business utility and telecom payments to accelerate your business credit growth.   

Once you sign up, we’ll automatically attempt to download up to 24 months of your payment history to service providers and will report it to Equifax.  

The Business Lift subscription payment is reported to Equifax, plus Dun and Bradstreet and Experian.  

In turn, this can quickly boost your business credit scores as long as you’ve made your payments on time or early.   

Other Business Credit Tips  

Beyond that, you can improve your business credit history by doing the following:  

Make sure you’ve established your business as a separate legal entity and choose a legal structure (LLC, partnership, corporation, etc.)  

Get your EIN and DUNS Number to uniquely identify your business  

Open a business bank account (not only does a business bank account make you look more professional, but it’s also required by many lenders)  

Apply for a business credit card (a business credit card helps build business credit and makes it easier during tax time)  

Apply for trade credit from a vendor that reports to at least one major credit agency  

Also, be sure to monitor your business credit history to ensure the information is accurate. If you happen to find an error, you’ll want to dispute it right away, as failing to do so could potentially hurt your business credit score.   

This can be done by simply checking your business credit profile via a business bureau like Dun & Bradstreet or Equifax (similar to how you would check your personal credit score with Credit Karma).  

FAQs  

Does Business Credit Start at 0?  

The range of business credit scores can vary depending on the particular credit bureau.  

But, yes, many business credit scores like the Dun & Bradstreet PAYDEX Score and Equifax’s Payment Index Score start at 0 and go up to 100.   

If your business is just starting out and you haven’t yet established credit, you’ll likely have a low credit score or no credit score at all.   

However, once you initiate some basic credit building and have practiced proper credit utilization, your credit history should gradually improve.   

Can You Get Business Credit Right Away?  

While it takes about 12 months to build solid business credit and as many as three years to build a comprehensive credit profile, you can start building at least some business credit within the first six months.   

This is done by taking care of the fundamentals like choosing a business structure, registering your business, getting an EIN and DUNS Number, opening a business bank account, and applying for a business credit card.   

How Long Does it Take to Report Business Credit?  

It typically takes at least 30 days to report business credit. 

However, that’s the minimum, and in many cases, a credit card or business line will take closer to 60 or 90 days.   

At that point, your payment history should appear on your business credit profile, and you can officially start building credit.  

What is a Good Business Credit Score?  

First, be aware that a personal finance credit score range is a lot different from a business credit score range.  

Personal credit scores typically range from 300 to 850, while business credit scores usually range from 0 to 100.  

In general, a score of 80 on Dun & Bradstreet’s PAYDEX Score, Equifax’s Payment Index, and Experian’s Business Credit Score — all of which range from 0 to 100 — is considered good.  

This indicates a low credit risk, which means you stand a reasonable chance of being approved for a loan or credit account by many business lenders to fund your business.  

Learn More About Building Business Credit: 
- Low Risk Industries for Business Credit  
- How To Build Business Credit Without Using Personal Credit  
- Can You Buy a House with Business Credit?  
- How to Build Business Credit With Bad Personal Credit