Building strong business credit is essential for Canadian entrepreneurs seeking financing. A solid business credit score opens doors to better loan terms, higher borrowing limits, and lower interest rates. Here's your complete guide to establishing and building business credit in Canada.
Business credit is a separate score from your personal credit. It measures your business's creditworthiness based on how your company manages credit accounts, pays bills, and handles debt. Major business credit bureaus in Canada include Dun & Bradstreet (Paydex Score), Equifax Business, and TransUnion Business.
Register your business as a corporation or LLC to separate it from your personal finances. This creates a distinct legal entity that can build its own credit history.
Apply for a Business Number (BN) from the Canada Revenue Agency. This is required to open business bank accounts and credit accounts in your company's name.
Separate your personal and business finances completely. A business chequing account is essential for building a clean financial history.
Start with a secured business credit card or a card with low limits. Use it for small, regular expenses and pay off the balance in full each month.
Apply for net-30 accounts with suppliers and vendors. These trade credit accounts report to business credit bureaus and help build your score.
Regularly check your business credit reports from Equifax and TransUnion. Dispute any errors and track your progress over time.
Payment history is the biggest factor in your business credit score. Set up automatic payments and never miss a due date.
| Score Range | Rating | Likelihood of Approval |
|---|---|---|
| 800-100 | Excellent | Very high - best rates |
| 670-799 | Good | High approval chances |
| 580-669 | Fair | Moderate - higher rates |
| 0-579 | Poor | Limited options |
Building business credit takes time. Here's a realistic timeline:
Let our experts help you navigate the credit-building process and find the right financing options as your credit improves.
Get Started Today