How to Use EIN Number for Credit

Using your employee identification number (EIN) for credit instead of leveraging personal credit helps you keep your finances separate and avoid potential issues.

Here’s how to use EIN number for credit following our step-by-step process.

1. Get Your DUNS Number

Whether you’re applying for an SBA loan or a net 30 account, vendors and lenders may ask for your DUNS Number.

A DUNS Number is a 9-digit identifier tied to your Dun & Bradstreet profile. Getting a DUNS Number helps you establish your business with D&B.

This then helps you secure credit solutions faster, as companies will be able to confirm your business activity and credit health faster.

Getting a DUNS Number is quite simple. You will need to create a profile and provide them with basic information. These include your business name and address, phone number, EIN, and structure.

It’s free to get a DUNS Number. However, you will have to wait about 30 days to receive it.

If you’re in a hurry, you can expedite the process. This is rather expensive at $229, but you get your DUNS number in eight business days.

If D&B has any questions, they’ll reach out to you to authenticate your information and complete the process. Once you have your DUNS Number, you’ll be ready to proceed with securing credit solutions.

2. Get a Business Checking Account

As we explained above, keeping your personal and business finances separate is crucial.

But it doesn’t just benefit you by preventing your credit or personal finances from being affected by business activity.

Having a separate business checking account for your business is a must to secure financing for your business.

Lenders will look for a business checking account to evaluate your business’s financial strength and stability. It allows you to demonstrate that you have the revenue necessary to pay back your loans. It also makes it easy for them to evaluate your financial health.

As with an EIN, opening a business checking account is easy, provided you have the right documentation. Besides documents, you’ll need the basics like personal ID, business name and address, and your EIN.

You’ll also need your articles of incorporation, business license, and ownership agreement for a business bank account. Take care to research your options and select a business account that will support you. Also, look for one with low fees attached to a bank you can grow with.

3. Get Net 30 Accounts with Your EIN

Net 30 accounts are offered by vendors who allow you to pay within 30 days of the date of your invoice.

Net 30 accounts are often the first step in building your business credit. They’re easy to qualify for and aren’t complex to use.

That being said, there are some important things to note before you apply for net 30 accounts.

When applying for net 30 accounts, use EIN-only accounts. Don’t apply for those that only require an SSN. This means they’ll likely check your personal credit.

If it is an EIN-only account, look further into its use terms. There are many net 30 accounts that come with fees. These include application fees, annual membership fees, and so on.

Signing up for the wrong account could see you spending hundreds when you could be getting the same benefits elsewhere for free.

You will also want to make sure your net 30 accounts reports to business credit bureaus. Ideally, they should report to the top three: Dun & Bradstreet, Equifax, and Experian. However, reporting to at least one business credit bureau can still be beneficial.

The problem lies with suppliers that don’t report at all. One example is the Amazon net 30 account. They offer net 30 terms, but they don’t help you build credit. This defeats the purpose of using your EIN for credit and can set you back on your credit-building journey.

4. Get the FairFigure Capital Card

Accessing funding with limited business credit and an EIN-only can be difficult. One tool you can leverage with your EIN is the FairFigure Capital Card.

The FairFigure Capital Card is an EIN only business credit card that reports to the business credit bureaus. Unlike similar funding solutions, you won’t need to sign a personal guarantee, undergo a personal credit check, or fill out any paperwork.

It extends funding based on your business revenue. Whether you’re making $2,500 or $250,000, you’ll find this to be a useful tool in funding your business and building business credit.

The FairFigure Capital Card reports to Equifax, CreditSafe, the SBFE, and the FairFigure Foundation Report. It boasts flexible payback terms, with a choice of 4-week or 8-week payback options.

This EIN-only card is also quite easy to qualify for. So long as you’ve been in business for at least three months and generate at least $2,500 a month, you can get a FairFigure Capital Card.

With the FairFigure card, you’ll receive two business tradelines that will help you build your business credit and access better opportunities faster.

5. Graduate to Tier 2 Business Credit Accounts

Business credit is like a stepping stone for each tier of credit.

Business owners start out with tier 1 business credit vendors. These are easy to qualify for, making it possible to establish credit history and build your business credit score.

Over time, all that work will make an impact. That’s when you can take the next step over to tier 2 business credit vendors.

As the name suggests, tier 2 business credit vendors offer more and require more.

Tier 2 business credit vendors will help you access longer repayment terms and higher credit limits.

But in order to tap into these opportunities, you need to have established business credit history and have demonstrated your ability to pay back your debts on time (or even ahead of time). Tier 2 account providers want businesses with a low risk profile.

That being said, the advice above still stands. Whether you’re applying for a net 30 account or a business credit card, evaluate the terms, make sure they report to business credit bureaus, and leverage financing options that are relevant to your business operations.

6. Proceed to Car Financing and Business Credit Cards

Once you’ve built up your business credit to a sufficient point, you’ll be able to access much better financing opportunities and funding tools.

One example of financing you should graduate to is vehicle financing. With your robust credit history, timely repayment habits, and solid business revenue, you can begin funding your first business vehicle purchase or finance a whole fleet.

If you’re looking to support your fleet in another way, you could apply for fleet cards. Fleet cards are business credit cards offering perks for businesses with fleets.

Those offered by Shell, Texaco, or Exxon may be acquired with an EIN only once you meet their stringent eligibility requirements.

Another example is Dell Computer Financing. If you need to finance essential computer equipment for your business, applying for financing through Dell can help you tap into their revolving line of credit to manage your tech expenses.

There are ample opportunities at your disposal once your business credit is strong enough.

7. Business Lines of Credit Are the Holy Grail

A business line of credit, particularly unsecured, can be a bit more challenging to qualify for. But if you follow the steps above to establish a strong credit history and a stellar track record of making each payment on time, it will offer a wealth of benefits.

A business line of credit can help you solve cash flow gaps effectively. Its flexible nature means that you can borrow what you need, repay that amount, and then access your full credit line again.

You’ll find that some business lines of credit boast competitive interest rates. So long as the fees don’t outweigh what you save with a lower interest rate, this is a major bonus.

Better yet, it offers more support in building your credit so you can continue accessing superior financing solutions that help you scale and manage your business.

Monitor Your Business Credit with FairFigure

Your business credit journey has to start somewhere, and FairFigure makes it easy to get started.

Our business credit monitoring services help you track key scores from D&B, CreditSafe, and Equifax.

Perks like our Business Credit Corrector and Darknet Scanner serve to keep you on track. Meanwhile, our AI podcasts can help you gain useful insights into your credit health and journey.

Your monthly subscription is reported as a tradeline, and you gain access to the FairFigure Capital Card when you sign up for credit monitoring services.

Ready to begin building your business credit? Start with your free business credit report and business credit scores, or sign up for FairFigure today!