One easy way to jumpstart your business credit

Opening vendor accounts and paying by invoice can help you establish business credit. Plus, what’s driving more Americans to start a side business?

My colleague Ryan Brady wrote this edition of Starting Small. Ryan used to be a small-business owner and now writes about business lending at NerdWallet.

Let me know if you have questions you’d like us to answer! You can always reach me, Rosalie, at rmurphy@nerdwallet.com.

Here’s Ryan.

In this issue

• Try this: Apply for a vendor net-30 account.

• In the news: Why more Americans are picking up side businesses.

• Today’s tip: Get a DUNS number (even if you’re just starting out).

Try this: Apply for trade credit from your vendors

Your business credit score tells others how responsible you are when it comes to paying back business debts. Think of it as a financial report card for your business. Generally, the higher your score, the better your borrowing opportunities.

But your company doesn’t start out with a credit history. One way to start one is to apply for a vendor account with net-30 terms. This means the vendor delivers goods or services now, and you have up to 30 days to pay the invoice in full.

This is called “trade credit.” Here’s why it matters:

• It builds your business credit profile. Many vendors report payment history to commercial credit bureaus. As long as you pay your vendors back on time, net-30 accounts can help boost your business credit score over time.

• It can help with cash flow. Instead of paying cash for supplies or inventory upfront, you can start to sell the inventory or use the supplies before the payment is due. This helps free up cash to use on other things.

• It can open the door to future opportunities. A strong history with vendor accounts can help you qualify for better payment terms, larger credit lines and even business loans down the road.

Aim for at least three vendor accounts, since you’ll need three or more trade references to get a PAYDEX score. That’s the main business credit score issued by Dun & Bradstreet, one of three major business credit bureaus.

These vendors report to at least one of those credit bureaus:

• Uline (cleaning, shipping and retail supplies, along with commercial furniture).

• Grainger (industrial supplies and hardware).

• Staples (office supplies).

• Newegg (computer hardware and electronics).

• Amazon Business (office supplies, power tools and more).

While it’s typically free to apply for trade credit, you may be subject to membership fees, minimum order thresholds and other requirements.

Not all vendors report payment activity to credit bureaus. If that’s the case for one of your suppliers, you still may be able to add them as a trade reference on your credit account by signing up for additional support from Dun & Bradstreet.

In the news: More people are starting side businesses out of necessity

According to a recent NerdWallet survey, 10% of Americans started a side business or second job in 2025 because their primary job doesn't financially cover their necessities.

If you’re among them, make sure you’re supplementing your income without interfering with your primary job’s schedule. Don’t compromise your steady paycheck to make a few extra bucks on the side.

Beyond the extra cash, starting a side hustle can be a great way to test out a business idea. Lots of new entrepreneurs are selling products online, freelancing or making money from their personal hobbies like baking, crafts or photography.

Just try to find your footing before you quit your day job. If you start making a killing from your new business, that’s great — it could be your launchpad into full-time entrepreneurship.

Today’s tip: Get a DUNS number (for free)

A DUNS number is a unique identifier assigned to your business by Dun & Bradstreet.

You’ll need a DUNS number to establish a business credit score with D&B. Potential lenders and business partners can also use your DUNS number to look up your business’s history of making on-time payments.

Look up your business on Dun & Bradstreet’s website to see if you’ve already been assigned a DUNS number. That can happen if a supplier has already told D&B about your payment history.

If you don’t have one, apply for free. It can take up to 30 days for your application to go through, and you may be contacted by someone to verify your info. After that, D&B will send your DUNS number to your inbox.