There are several ways to build business credit that is solid. Open a checking account and/or a savings account is one way to go. While these do not begin your credit file, they may be checked by lending institutions as evidence that you have money and know how to manage it. Canceled checks can be used to show you pay utility bills or rent regularly, which is a sign of reliability.

Another way to build business credit is by asking whether you may deposit funds with a financial institution to serve as collateral for a credit card. There are some institutions that will issue a credit card with a credit limit usually no greater than the amount on deposit. If you're new in town, it's recommended that you write for a summary of any credit record kept by a credit bureau in your former place of residence.

Obtaining business loans has proven elusive for many small businesses. It's often on a company's first attempt to build business credit that they face the common Catch-22: you already need to have credit to get credit. Creditors have been known to look at your salary, job, and other financial information you put on your application. However, they also want to know about your track record in handling credit, specifically how reliable you've been in repaying past debts.

Creditors continually turn to the records kept by credit bureaus or business credit report services whose business is to collect, store, and report information about borrowers. This information is routinely supplied by many lenders. These records shine light on the amount of credit you've received and how faithfully you've paid it back.