When most people think about building business credit, they often assume it requires taking out traditional loans. However, there are alternative strategies to grow your business credit profile without tying yourself to hefty loan repayments.
These strategies not only help you establish a strong credit foundation but also open doors to better funding options when your business needs it most. In this article, we’ll explore 7 surprising ways to build business credit—no loans required. And for more expert insights, join this Free Training to learn about 50+ funding options that fit your business goals.
Why Building Business Credit Without Loans Matters
Traditional loans often come with strict credit requirements, long approval times, and the risk of debt. Building credit without loans allows you to strengthen your financial profile while maintaining control of your cash flow.
Benefits of Building Credit Without Loans:
- Avoid long-term debt.
- Reduce reliance on personal credit.
- Access alternative credit-building tools and strategies.
1. Open Vendor Trade Accounts
Vendor trade accounts are one of the easiest ways to build business credit without loans. Many suppliers offer net-30 terms, meaning you can purchase goods or services and pay the balance within 30 days.
How It Works:
- Choose vendors that report payment activity to business credit bureaus like Dun & Bradstreet, Experian, and Equifax.
- Pay invoices on time—or early—to build a positive credit history.
Recommended Vendors:
- Uline: Shipping and warehouse supplies.
- Quill: Office supplies.
- Grainger: Industrial equipment.
2. Use a Secured Business Credit Card
If you’re struggling to qualify for a regular business credit card, a secured card is a great alternative. Secured cards require a deposit, which acts as your credit limit.
How It Works:
- Make small, manageable purchases.
- Pay off the balance in full each month to establish a solid payment history.
Pro Tip:
Some secured cards transition to unsecured cards after consistent use, making them a stepping stone to more traditional credit options.
3. Build Relationships with Utility Providers
Did you know that your utility payments can help establish business credit? While not all providers report to credit bureaus, you can use services like eCredable to ensure your utility and phone payments contribute to your credit profile.
What to Include:
- Business phone line.
- Internet service.
- Electricity and gas accounts.
4. Leverage Business Rental Agreements
If your business rents office space, equipment, or vehicles, these payments can help establish credit—if the provider reports them.
What to Do:
- Ask your landlord or equipment provider to report payments to credit bureaus.
- Use services like CreditSafe to link rental agreements to your credit profile.
5. Apply for Store Credit Accounts
Many retailers offer business credit accounts that are easier to qualify for than traditional loans.
Popular Store Credit Accounts:
- Staples Advantage: Office supplies.
- Home Depot Pro Xtra: Construction and home improvement supplies.
- Amazon Business Prime: General business purchases.
Pro Tip:
These accounts often come with perks like discounts and extended payment terms, making them a win-win for credit building and cost savings.
6. Register for a D-U-N-S Number
Your D-U-N-S Number is a unique identifier provided by Dun & Bradstreet. This number is essential for tracking your business credit activity and building a profile that lenders trust.
How to Get Started:
- Register for a free D-U-N-S Number on the Dun & Bradstreet website.
- Ensure your vendor and payment accounts are linked to your D-U-N-S profile.
7. Use Business Subscriptions and Memberships
Subscriptions for software, coworking spaces, or industry associations can contribute to your credit profile if they report payments.
Examples of Eligible Subscriptions:
- SaaS tools like QuickBooks or Salesforce.
- Memberships with coworking spaces like WeWork.
- Industry-specific organizations that offer payment reporting.
Pro Tip:
Always ask providers if they report payments to business credit bureaus. If they don’t, services like eCredable Lift can help.
Common Mistakes to Avoid
Building business credit without loans requires consistency and attention to detail. Avoid these pitfalls:
- Missing Payments: Even one late payment can hurt your credit score.
- Ignoring Credit Monitoring: Regularly review your business credit profile to catch errors or inaccuracies.
- Mixing Personal and Business Finances: Always use dedicated business accounts for payments.
How the Free Training Can Help
If you’re ready to unlock the secrets of building business credit without loans, the Free Training is your next step. Learn how to:
- Leverage vendor accounts, secured cards, and other credit-building tools.
- Improve fundability to access better financing options.
- Explore 50+ funding strategies tailored to small businesses.
Conclusion
You don’t need traditional loans to build strong business credit. By leveraging vendor accounts, utility payments, secured cards, and other surprising strategies, you can establish a solid credit foundation and set your business up for long-term success.
Take the first step today—join the Free Training to discover how to grow your business credit profile and access the funding you need.