How to Use a Business Line of Credit to Boost Your Business Credit Score
Your business credit score isn’t just a number—it’s a reflection of your company’s financial health and credibility. A strong score can unlock better loan terms, higher credit limits, and more trust from vendors. One powerful tool to build that score is a business line of credit. In this guide we'll go through how to use a business line of credit to boost credit scores. But it’s not just about having access to funds—it’s about using it strategically. Here’s how to do it right: ✅ 1. Choose the Right Lender Not all lenders report your payment activity to business credit bureaus like Dun & Bradstreet or Experian Business. Before opening a line of credit, confirm they do—otherwise, your efforts won’t reflect in your credit score. ✅ 2. Use It Responsibly Draw on your credit line regularly, even for small expenses like inventory, equipment repairs, or payroll gaps. Regular, low utilization shows that you can handle credit wisely. ✅ 3. Keep Utilization Low Don’t max out your line o...