Why Building Business Credit Should Be a Priority for Your Restaurant

Though he has a degree in business administration, building business credit wasn’t in Clarence Adams’ course work. He wishes he had learned about it earlier. “I think knowing the information when you’re going into it would be wonderful,” he says. 

He and his wife Joi own two businesses: including their newest, an Italian ice shop in Fayetteville, GA. They started their first business with cash, but when it came to building The Icy Spot GA, they tapped personal credit for some of their startup costs. 

They are now in the process of moving locations to one with more opportunity for foot traffic. “It feels like we have to start over,” said Adams. He’s responsible for more of the renovations, there will be a new set of inspections, and he’s paying close attention to details like creating a more attention-getting logo.  “All while running another business,” he notes. 

Despite the challenges, they are determined to get to the next level.

Like the Adams’, most business owners aren’t taught how to build or leverage business credit when they start out. It’s not a complicated process, but it’s also not terribly well known or transparent. 

Seven Reasons to Make Business Credit a Priority 

1. Rising Food Costs Are Straining Restaurant Finances

According to TouchBistro's 2025 State of Restaurants report, food costs remain the number one source of financial strain for restaurant owners, with 26 percent citing it as their biggest financial challenge. The report found operators are spending an average of 34 percent more on food costs compared to last year.

Strong business credit gives you access to better financing options precisely when you need them—to manage those purchases or maintain cash flow during seasonal fluctuations. Rather than turning to personal credit cards that may carry high interest rates, or expensive merchant cash advances, a good business credit history can open up access to more affordable options.

2. Most Restaurants Are Taking on More Debt

The restaurant industry has seen a substantial increase in debt levels. TouchBistro's research reveals that 78 percent of full-service restaurants currently carry some debt—up from 68 percent last year. Even more telling, 42 percent of operators reported taking out loans in just the past six months.

With interest rates remaining higher than in recent years, the quality of your business credit can impact how much you'll pay to service debt. A strong business credit profile could mean the difference between manageable financing costs and interest payments that drain profits.

3. Expansion Opportunities Require Capital Access

Despite economic headwinds, restaurant owners remain optimistic, with 90 percent expressing positive sentiments about their future in that same survey. Almost half (49 percent) plan to add catering services, while 45 percent intend to add private events. These expansion strategies require capital.

When you've built solid business credit, your business will be in a stronger position to secure the financing for growth initiatives. Whether you need to purchase catering equipment, renovate space for private events, or expand your kitchen capacity, good business credit translates to more options and potentially better terms.

4. Technology Investment Is Becoming Non-Negotiable

Restaurant technology is no longer optional. TouchBistro found that 71 percent of restaurant operators plan to increase their technology spending in the next six months. The top planned investments include online ordering software (35 percent), marketing software (32 percent), and accounting software (32 percent).

These technology investments can dramatically improve your operational efficiency and bottom line, but they require upfront capital. Strong business credit provides access to equipment financing, technology loans, or business credit cards with rewards programs tailored to these purchases.

5. Vendor Relationships Improve with Strong Credit

Vendor management was cited as a growing concern by 23 percent of restaurant operators—up from 14 percent last year. As supply challenges continue, vendors are becoming more selective about which restaurants receive better payment terms; say net-30 or net-60 instead of net-10 terms.

Building business credit helps establish credibility with suppliers. When you demonstrate financial responsibility through your business credit profile, vendors are more likely to give your business more time to pay. This breathing room can significantly improve your cash flow management—a critical advantage when margins are tight.

6. Business Credit Creates a Valuable Asset

Your restaurant isn't just your passion—it's also an asset that has value beyond its physical inventory and real estate. A strong business credit profile adds to your restaurant's overall value if you ever decide to sell your business or bring on investors.

When you have established credit relationships and a strong payment history, buyers are also purchasing your business's financial reputation, which can be valuable in acquisition negotiations.

7. Personal Liability Protection Becomes More Effective

When you establish strong business credit, you reduce the need to rely on personal guarantees for every business transaction. Though some loans–and most small business credit cards–will still require personal guarantees, building business credit creates a path toward reduced personal liability over time. 

How to Start Building Your Restaurant's Business Credit

Here's how to start building business credit quickly:

1. Establish your foundation: Ensure your restaurant is properly registered as a business entity (LLC or corporation), has an EIN (Employer Identification Number), and maintains dedicated business contact information.

2. Get a D-U-N-S® Number: This free identifier from Dun & Bradstreet will be used to match your payment history in the D&B business credit system. 

3. Open restaurant-specific accounts: Establish relationships with suppliers that report to business credit bureaus. (In industry terms, these are referred to as tradelines.) Look for net-30 accounts with food, beverage, packaging and/or equipment vendors.

4, Get a business credit card: Select a card that reports to business credit bureaus, ideally with rewards relevant to restaurants (like extra points on food, equipment, or advertising purchases).

5. Pay on time or early: Business credit scoring is particularly sensitive to payment timing. Even a few days late can impact your business credit scores.

6. Monitor your business credit: Regularly check your restaurant's credit reports to ensure accuracy and track your progress.

Like any type of credit-building process, building business credit takes time. But it doesn’t have to be time-consuming. Most restaurants can establish initial business credit in several months, but building strong business scores typically takes at least 6-12 months or more. That’s why you’ll want to start the process sooner rather than later.