Business Finances and Credit
Managing your business money correctly from the start is one of the strongest foundations you can build. This guide breaks down banking, bookkeeping, credit, vendor accounts, and beginner funding so you can grow your business the right way without confusion.
Each section is simple, direct, and written for real beginners who want clarity.
1. How to Open Business Banking
Opening a business bank account is one of the first major steps in becoming a real business. This is where your money becomes organized, protected, and easy to manage. Without business banking, your finances will get mixed, your taxes become messy, and your LLC protection can break down.
Business banking is the foundation for everything else
bookkeeping
credit
loans
growth
Below is the full guide on what you need, how to open your accounts, and why it matters.
What You Need Before You Apply
Banks will ask for documents that verify your identity and confirm your business exists.
Have these ready before you go in or apply online.
Your EIN
This is your business tax ID.
You get it free from the IRS.
Your LLC formation documents
These include
Articles of Organization
Certificate of Formation
Your state approval letter
These are proof that your business legally exists.
Your operating agreement
Some banks require this, especially for LLCs.
This document explains who owns the business and how it is managed.
If you are a single member LLC, you can use a simple one page operating agreement.
Your personal ID
Your driver’s license or passport.
Your business address
Can be your home address if you work from home.
Some banks prefer a physical address instead of a P O Box.
How to Open a Business Bank Account
You can open your account in person or online depending on the bank.
Step 1: Visit or apply online
Most major banks allow online applications, including
Chase
Bank of America
Wells Fargo
Capital One
BlueVine
Lili
Online banks like BlueVine and Lili are easier, faster, and more beginner friendly.
Traditional banks like Chase and Bank of America offer strong credit and loan options later.
Choose based on your business needs.
Step 2: Bring or upload your documents
Your EIN letter
Your LLC documents
Your operating agreement
Your ID
The bank uses these to verify your business identity.
Step 3: Apply for a Business Checking account
Your business checking account becomes your primary financial home.
All income goes here.
All expenses should be paid from here.
This creates clean separation between your personal money and your business money.
Step 4: Add a Business Savings account if needed
A savings account is optional but helpful.
You can use it for
tax money
emergency funds
profit savings
future investments
Separating your savings keeps you from spending money you will need later.
Why Business Banking Matters
Business banking is not optional if you want a legal and successful business.
It protects you, organizes your money, and prepares you for growth.
You do not want to mix personal and business money
Mixing funds is one of the biggest mistakes small business owners make.
It destroys your bookkeeping
It complicates taxes
It can break your LLC protection
Once money mixes, the law can treat you and your business as the same, which eliminates the point of having an LLC.
It keeps your LLC protection valid
Your LLC only protects you if you keep finances separate.
If your personal and business money mix, it becomes harder to prove that your business is a separate legal entity.
It makes bookkeeping simple
Separate banking means
you always know what the business earned
you always know what the business spent
You will thank yourself during tax time.
It makes taxes easier
Clean banking means clean tax records.
Your accountant (or you) will know exactly what belongs to the business.
It prepares you for business credit
Lenders check your banking history.
They want to see
consistent deposits
organized finances
a clean checking account
Without a business bank account, you cannot build true business credit.
Professional Tips
Use two banks when possible
One bank for daily operations
income, expenses, debit card
A second bank for
tax savings
profit savings
emergency funds
This keeps you disciplined and organized.
Never pay yourself directly from business income
Instead
transfer money from your business checking to your personal account
this counts as a draw or salary depending on your structure
It keeps everything clean and professional.
Automate your savings
Send a percentage of each deposit to your savings account
for taxes
for profit
for growth
Summary
Opening business banking is a simple step with powerful long term benefits.
It protects your LLC, organizes your money, simplifies taxes, and prepares you for business credit and funding.
Once your business accounts are open, you are ready to move into
bookkeeping
vendor accounts
credit building
and structured growth.
2. How to Set Up Bookkeeping
Bookkeeping is the process of tracking all the money that comes in and goes out of your business. It sounds intimidating, but once you understand the basics, it becomes simple. You do not need an accountant to get started. You only need a system that keeps everything organized and consistent.
Good bookkeeping keeps your business healthy, protects you during tax season, and shows you what is really happening with your money.
What Bookkeeping Actually Is
Bookkeeping is
recording every sale
recording every expense
storing receipts
categorizing your spending
understanding your profit
It helps you see the full financial picture of your business so you can make smart decisions.
Bookkeeping Options
You can keep your books as simple or advanced as you want. Here are the most common tools:
A spreadsheet
Perfect for beginners.
You can use Google Sheets or Excel.
Create columns for income, expenses, categories, and dates.
Simple, free, easy to set up.
QuickBooks
The most popular bookkeeping software.
Great for growing businesses.
Connects to your bank accounts.
Automatically categorizes transactions.
Good for businesses with multiple income streams.
Wave (free)
Beginner friendly and completely free.
Good for freelancers, service providers, and small businesses.
Connects to your bank and tracks income and expenses.
FreshBooks
Ideal for service based businesses and invoicing.
Clean interface.
Easy to track time, projects, and payments.
Xero
A more advanced bookkeeping tool.
Great for businesses with employees or multiple accounts.
What to Track Monthly
Your bookkeeping system should track the core areas of your business every single month.
Income
All payments you receive
sales
projects
services
digital product purchases
Expenses
Everything you spend on the business
subscriptions
supplies
software
ads
equipment
Profit
Your income minus your expenses
This tells you whether you are actually making money.
Subscriptions
Track these carefully.
Many people forget about monthly charges and lose money.
Invoicing
Keep a list of
invoices sent
invoices paid
invoices overdue
Mileage (if applicable)
If you drive for business purposes, you can track mileage for tax deductions.
What to Categorize
Categorizing expenses helps you see where your money goes and makes tax season easier.
Common categories include
Marketing
Supplies
Travel
Meals
Equipment
Software
Payments to contractors
Education
Office expenses
Tip
Do not overthink categories. Keep it simple and consistent.
Why Bookkeeping Matters
Bookkeeping is not just record keeping. It protects your business in multiple ways.
You avoid IRS issues
If you are ever audited, clean records protect you.
The IRS wants documentation.
Bookkeeping gives you a clear financial trail.
You know your real profit
Many business owners think they are making money until they see how much they spend.
Bookkeeping reveals the truth.
You see where your money goes
You will notice patterns
spending too much on apps
not spending enough on marketing
overspending on supplies
Awareness allows you to adjust.
You can plan ahead financially
Bookkeeping helps you
set budgets
save for taxes
prepare for slow months
invest in growth
You are prepared for tax season
Accurate records make taxes easy and reduce stress.
Your accountant will thank you.
You will save time, money, and frustration.
Professional Tips
Set aside a day each week to update your books
Do not let months of transactions pile up.
Choose one day each week, even fifteen minutes, to
add income
add expenses
categorize
store receipts
Use digital receipts
Email receipts to yourself
or store them in a Google Drive folder
This creates a clean record of everything.
Connect your bank accounts to your software
If you use QuickBooks, Wave, or FreshBooks, connect your business bank account so transactions upload automatically.
Summary
Bookkeeping is the backbone of a healthy business.
It keeps your finances clean, shows you your real performance, and protects you during tax time. You do not need to be an expert to start. You only need consistency and a simple system that works for you.
3. How to Get a DUNS Number
A DUNS number is a unique nine digit identifier assigned to your business by Dun and Bradstreet, one of the major business credit reporting agencies.
Think of it as your business’s ID number in the corporate world.
It helps lenders, vendors, government agencies, and large companies verify who you are and evaluate your business credit profile.
Even if you are a small business or just getting started, having a DUNS number sets you up for long term growth.
What a DUNS Number Does
A DUNS number creates an official listing for your business in the Dun and Bradstreet database.
This database is used by
big companies
manufacturers
wholesale suppliers
government contractors
grant organizations
vendors that offer credit
Once you have a DUNS number, your business can start building a credit profile the same way a personal credit score works.
Why You Need a DUNS Number
To build business credit
Dun and Bradstreet tracks payment history from vendors.
If you want strong business credit, you need a DUNS number so your payments can be reported.
To apply for certain grants
Many grants for small businesses require a DUNS number to verify your business identity.
To work with corporate suppliers
Large suppliers and wholesalers use the Dun and Bradstreet system to check business legitimacy before offering accounts or bulk purchasing options.
To get approved for vendor accounts
Most vendors that help build business credit require a DUNS number so they can report your on time payments.
A DUNS number is one of the main building blocks for business credit and long term financing opportunities.
How to Get Your DUNS Number
Getting a DUNS number is simple. It is free and requires no special documents beyond basic business information.
Step 1: Go to the Dun and Bradstreet website
Search
DUNS number application
or
Dun and Bradstreet Get a DUNS Number
Make sure you are on the official website. There are many copycat sites.
Step 2: Search for “Get a DUNS Number”
Click the application link.
You will be asked to enter basic information like
your business name
your business address
your industry
your EIN
your contact information
Step 3: Apply online for free
Dun and Bradstreet offers several paid packages, but you do not need them.
Choose the free option for small businesses.
The free application is more than enough to get your number and start your business credit profile.
Step 4: Wait for processing
The free DUNS number can take up to thirty days to process and arrive.
You will receive email confirmation once your number is assigned.
If you need it urgently, Dun and Bradstreet offers paid expedited options, but they are not necessary for most businesses.
Professional Tips
You do not need to buy upgrades
Dun and Bradstreet will try to sell
credit monitoring
credit building services
expedited delivery
None of these are required to get your DUNS number or start building business credit.
Keep your information consistent
Make sure your
business name
address
EIN
match across all documents.
Anything inconsistent can delay credit reporting.
Store your DUNS number safely
You will need it for
vendor accounts
credit applications
government registrations
Summary
A DUNS number is one of the core building blocks for business credit.
It helps your business appear credible and legitimate in the eyes of lenders, suppliers, and corporate partners.
The process is simple
Apply on the official Dun and Bradstreet website
Choose the free option
Wait for your number
Start building your business credit profile
4. How to Separate Personal and Business Credit
Keeping your personal identity and your business identity completely separate is one of the most important parts of running a real business.
This separation protects your personal credit, strengthens your LLC, and helps your business build its own credit score over time.
Without this separation, lenders and vendors treat you and your business as the same person, which defeats the purpose of having an LLC.
Below is exactly how to keep everything clean, professional, and fully separate.
Use Your EIN Instead of Your Social When Possible
Your EIN is your business tax ID number.
Any time a form asks for SSN or EIN, choose EIN if the situation allows it.
Use your EIN for
Business banking
Vendor accounts
Business credit card applications
Wholesale accounts
Government forms
Corporate contracts
Why this matters
Using your EIN makes lenders recognize your business as a separate entity.
This helps you build real business credit instead of relying on your personal credit history.
Keep Your Finances Completely Separate
The golden rule
Never mix personal and business money.
Not even once.
Mixing funds confuses your records, weakens your LLC protection, and makes your taxes complicated.
Use your business debit or credit card for everything
Every business purchase should run through your business account
software
supplies
marketing
equipment
ads
subscriptions
Do not use personal cards for business expenses
If you use your personal card
it does not help your business credit
it mixes finances
it weakens your LLC’s legal protection
Deposit all income into your business bank account
Never deposit business income into your personal account.
All revenue should go directly into your business checking account.
Pay yourself from the business
Your business should pay you through
a transfer to your personal account
or
a salary if you are structured that way
This keeps your records clean and professional.
Build Your Business Identity
Lenders and vendors want to see that your business exists as a real, separate entity with its own identity.
Here is what to set up:
A real business address
Your home address is fine for many businesses
You can also use a virtual business address
Avoid P O Boxes
A business email
Use a professional domain email
yourname at yourbusiness dot com
not a free gmail address
A business phone number
Use Google Voice, Grasshopper, or a separate phone line.
Lenders want to see a dedicated business number.
An LLC
This is the legal structure that separates you from your business.
A DUNS number
This creates your business file with Dun and Bradstreet
the main business credit bureau
Why Separation Matters
Separating your personal and business credit gives you long term advantages.
It protects your personal credit score
If your business needs funding, your personal credit will not be affected.
You avoid unnecessary inquiries and debt linked to your personal identity.
It builds business credit faster
When you keep everything separate
banking
vendors
credit cards
your business builds its own credit profile much faster.
It makes you look legitimate to lenders
Banks, vendors, and financial institutions want to see a business that operates professionally.
A fully separate business identity builds trust.
It keeps your bookkeeping clean
Separate accounts mean you instantly know
what the business earned
what the business spent
what your profit is
It protects your LLC
Your LLC only protects you if your business behaves as a separate entity.
Mixing money can break that protection.
This is one of the most common mistakes small business owners make.
Summary
Separating your personal and business credit is not optional.
It is essential for legal protection, clean finances, and long term growth.
The basics
Use your EIN
Keep financial accounts separate
Build your business identity
Never mix funds
Operate professionally
This creates a strong foundation for real business credit, funding opportunities, and long term success.
5. How to Build Business Credit
Business credit works the same way personal credit does, except it belongs to your business, not you.
It helps your business qualify for
credit cards
vendor accounts
lines of credit
loans
higher limits
better interest rates
A strong business credit profile makes your business look trustworthy, stable, and capable of handling larger financial opportunities.
Below is the complete step by step breakdown of how to build business credit from zero.
Step 1: Set Up Your Business Profile
Before building credit, your business needs a verified identity.
Lenders and vendors will not report to you if your business profile is incomplete.
Your business profile needs to have
LLC
EIN
Business bank account
DUNS number
Business address
Business phone number
Business email
Professional website (optional but helpful)
Why this matters
Business credit bureaus collect information from multiple sources.
Your business must look real and consistent across all platforms.
Any mismatch between your LLC documents, IRS records, banking information, or DUNS file can delay or prevent reporting.
Step 2: Open Starter Vendor Accounts
Starter vendors approve new businesses with little to no credit history.
They extend small lines of credit and report your payments to the business credit bureaus.
When choosing vendors, make sure they report to
Dun and Bradstreet
Experian Business
Equifax Business
Beginner friendly vendor accounts include
Quill
Uline
Grainger
Shirtsy
Summa Office Supplies
These accounts let you order supplies on a Net 30 invoice, meaning you receive the products now and pay the invoice within 30 days.
Why these vendors matter
Your business needs at least three vendor accounts reporting positively before major lenders or credit card companies will take you seriously.
This is your foundation.
Step 3: Pay All Invoices on Time
Payment history is the number one factor in business credit scoring.
To build strong business credit
Always pay early
Never miss due dates
Keep your business banking funded to cover invoices
Vendors report payment behavior each month.
Every early or on time payment improves your score.
Every late payment damages it.
Important
Business credit scores update faster than personal credit.
You can see improvements within thirty to ninety days.
Step 4: Use a Business Credit Card
After your vendor accounts start reporting, the next step is applying for a business credit card.
Business credit cards help build credit faster and give you better financial flexibility.
Beginner friendly business credit cards
Capital One Spark
Chase Ink
American Express Blue Business
These cards are known for approving newer businesses, especially if you have
clean bookkeeping
consistent deposits
an organized banking profile
How to use them
Use the card for everyday business expenses
Pay the balance in full each month
Keep utilization low
This builds strong credit history and increases your limits over time.
Step 5: Grow with Bigger Accounts
Once your business shows a positive payment history and consistent revenue, you unlock higher tier credit opportunities.
Examples of next level credit
Higher limit business credit cards
Store accounts with larger suppliers
Fleet cards
Business lines of credit
Financing for equipment or inventory
Bank loans
Benefits of a strong profile
Higher limits
Lower interest rates
Better approval odds
Access to larger vendors
A credible business identity
Business credit also helps you separate your personal finances entirely.
You will not need to use your personal credit score to support your business in the future.
Summary
Building business credit is a step by step process
Set up your business profile
Open starter vendors
Pay invoices early
Use business credit cards
Grow into bigger accounts
With consistency, your business can build a strong credit profile within months, not years.
This unlocks real opportunities for growth, funding, and long term stability.
6. Vendor Accounts for Beginners
Vendor accounts are one of the easiest and most reliable ways to start building business credit from zero. These are companies that let your business purchase products or services on credit and pay later, usually within thirty days. This is called a Net 30 account.
Even without established credit, many beginner friendly vendors will approve new businesses as long as your business profile is set up correctly. Every on time payment helps build your business credit history and credibility.
What Vendor Accounts Actually Are
Vendor accounts allow you to receive items first and pay the invoice later.
Instead of paying upfront, you get terms such as
Net 30
Net 15
Net 60
The number represents how many days you have to pay.
These accounts report your payment behavior to business credit bureaus, which helps build your business credit score.
Beginner Friendly Vendor Accounts
These vendors are known for approving new businesses and reporting on time payments to Dun and Bradstreet, Experian Business, or Equifax Business.
Quill
Office supplies
Reports to Dun and Bradstreet
Beginner friendly
Uline
Shipping boxes and supplies
Often approves new LLCs
Reports to multiple bureaus
Grainger
Industrial supplies
Easy to get approved with a complete business profile
Reports consistently
Shirtsy
Custom merchandise and apparel
Frequently used for credit building
Reports to business credit bureaus
Summa Office Supplies
Digital downloads and office products
Typically approves new businesses
Reports quickly
These starter vendors help you establish your business credit file when you have no history at all.
How to Use Vendor Accounts the Right Way
Using vendor accounts correctly is what builds your credit. Here is the simple process.
Buy small supplies
Start small
twenty dollars
fifty dollars
something simple and easy
There is no need to overspend.
Wait for the invoice
Most vendors send the invoice once the order ships.
This invoice will show your Net 30 due date.
Pay the invoice early
Always pay at least five to fifteen days before the due date.
Early payments are viewed extremely favorably by Dun and Bradstreet.
Repeat the process
You only need a few months of consistent on time payments to build a solid credit foundation.
Watch for reporting
It may take thirty to ninety days for vendor accounts to show up on your business credit file.
Why Vendor Accounts Matter
Vendor accounts are one of the easiest and safest ways to start building business credit without using personal credit.
They build credit before you qualify for credit cards or loans
Most banks will not issue a business credit card until your business has a credit profile.
Vendor accounts create that profile.
They help lenders trust your business
When lenders see on time payments and responsible financial behavior, they are more willing to approve you.
They increase your creditworthiness
Every positive report raises your business credit score and unlocks
higher limits
better terms
easier approvals
faster growth
Vendor accounts are the first step to building a business credit foundation strong enough to support future funding.
Summary
Vendor accounts are the easiest way to begin your business credit journey.
Apply to starter vendors
Make small purchases
Pay early
Build positive history
These simple steps help your business gain credibility, establish a credit profile, and prepare for more advanced credit and funding opportunities later.
7. Net 30 Explained
Net 30 is one of the most common payment terms in business credit. It simply means your business has thirty days to pay an invoice after the products or services have shipped. This is the standard starting point for building business credit because it shows lenders and vendors that your business can manage credit responsibly.
Net 30 accounts are often the first stepping stone that helps your business move from zero credit to real financial credibility.
What Net 30 Actually Means
When a vendor offers Net 30 terms, the timeline works like this:
Example
You place an order
The vendor ships your supplies
You receive an invoice with a date
You have thirty days from that invoice date to pay in full
You get the products now and pay later, which shows you can handle small lines of credit.
Net 30 gives you breathing room and flexibility while helping your business build payment history.
Why Net 30 Helps You
Net 30 accounts are powerful because they give your business a chance to prove itself financially without needing high credit scores or large amounts of revenue.
Builds business credit
Every on time payment you make helps create or strengthen your business credit profile.
Improves your payment history
Payment history is the single most important factor in your business credit score.
Paying Net 30 invoices early boosts your standing with the credit bureaus.
Shows lenders you are responsible
Banks and lenders look for positive payment behavior before approving
credit cards
lines of credit
loans
Net 30 proves your business can manage financial commitments.
Creates a financial paper trail
Vendors that report to Dun and Bradstreet, Experian, and Equifax create a traceable record of your credit activity.
This is essential for future funding.
Other Common Payment Terms
You may see different payment terms depending on the vendor or supplier.
The number always represents how many days you have to pay the invoice.
Net 15
You have fifteen days to pay
Shorter timeline
Used by vendors that want faster payment
Net 60
You have sixty days to pay
More flexibility
Typically offered to businesses with established credit
Net 90
You have ninety days to pay
Common with large suppliers and corporate accounts
Usually offered to businesses with strong credit history and high volume orders
These terms work the same way as Net 30.
The only difference is the number of days.
Professional Tips for Using Net 30
Pay early whenever possible
Early payments boost your business credit score faster and look better to lenders.
Use Net 30 strategically
Order small amounts
Pay early
Build credit
Move on to larger accounts and business credit cards
Track your due dates
Missing a Net 30 payment can damage your business credit quickly.
Set calendar reminders or use bookkeeping software to track due dates.
Summary
Net 30 is the foundation of business credit building.
It gives your business time to pay, helps you establish credit history, and proves to lenders that you can manage financial responsibilities.
Learn the terms
Use them responsibly
Pay early
Watch your business credit grow
8. Business Loans for Beginners
Business funding is not only for large companies. There are beginner friendly options designed for new entrepreneurs, side hustlers, and small businesses that are still growing. You do not need years in business to access funding, but you do need organization, consistency, and the right strategy.
This guide breaks down the simplest types of loans, what lenders look for, and how to prepare before applying.
Beginner Friendly Types of Business Loans
Microloans
Microloans are small loans provided by community organizations, nonprofits, or SBA backed programs.
They are designed for start ups and new business owners who do not qualify for traditional loans.
Benefits
Lower requirements
Smaller loan amounts
Beginner friendly
Common lenders
SBA microloan programs
Local community development groups
Nonprofit lending organizations
Online Lenders
Online lenders are fast and flexible. They approve based on cash flow more than time in business.
Beginner friendly lenders include
Fundbox
BlueVine
Kabbage
These lenders focus on
Your revenue
Your banking history
Your payment behavior
Not how old your business is.
Business Credit Cards
This is often the easiest form of funding for beginners.
Why they help
Fast approval
Intro zero interest offers
Rewards and points
Flexibility for purchases
Use them for
Equipment
Supplies
Marketing
Small business expenses
Pay them responsibly to avoid interest.
Personal Loans Used for Business
This option is not ideal, but many new entrepreneurs use a personal loan to fund early business costs.
If you choose this route, keep everything well documented
Track where the money goes
Do not mix business and personal accounts
Create a plan to move all operations under the business as soon as possible
What Lenders Look For
Even at the beginner stage, lenders still check for basic signs of responsibility and stability.
Business banking history
Lenders want to see deposits, consistent activity, and clean financial behavior.
Business income
The more predictable your income, the easier it is to get approved.
Credit scores
Both business and personal credit may be checked depending on the lender.
On time payments
Your payment history tells lenders how reliable you are.
Time in business
Some lenders require three to twelve months of operations, but many online lenders approve sooner.
Your industry
Some industries are considered higher risk than others.
When to Apply for Business Funding
You should apply only when your business is ready to handle the loan responsibly.
Apply when
Your business has consistent income
Your bookkeeping is organized
You can demonstrate real cash flow
You know exactly what the money will be used for
You can realistically repay it
Avoid applying when
Your business is struggling to survive
You have no clear plan
You are behind on bills or payments
Funding should help you grow, not dig a deeper hole.
Tips for Beginners
Do not borrow more than you need
Start with the exact amount required for your plan.
Have a strategy for the money
Use loans for growth, like
equipment
marketing
inventory
website upgrades
automation tools
Not survival expenses.
Keep everything separate and clean
Use your business bank account
Track every expense
Pay on time or early
Summary
Beginner friendly business loans exist. You do not need years of experience, perfect credit, or a large operation. What you need is preparation, clarity, and financial responsibility.
Start small
Grow smart
Use funding to build, not to fix
Your Next Step in Financial Growth
Getting your finances organized early is one of the strongest things you can do for your business. Clear banking, clean bookkeeping, and a solid credit foundation make your business stable, credible, and ready for real expansion.
Once your financial basics are in place, everything becomes easier
you can make smarter decisions
you gain access to better funding options
you build trust with lenders and partners
you set yourself up for long term growth
Your next steps depend on where you want to grow from here.
Explore
Vendor accounts to start building credit
Website setup to make your brand visible
Marketing and growth tools to attract clients
The Resource Hub will continue giving you simple, practical, step by step guidance for every stage of your business journey.
Come back anytime you are ready to learn, upgrade, or take your next move.