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How to Get a Business Line of Credit with EIN Only: The Essential Guide

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Most business line of credit applications require checking personal and business credit scores. However, opening a credit line for your business may be possible using your EIN only.

By leveraging your EIN, you can separate your personal and business finances while building your company’s credit profile. This makes sense for financial reporting and opens up some potential funding opportunities.

This guide covers the steps in the application process and provides examples of how using an EIN can work to your advantage in securing business financing. Specifically, we’ll answer these questions and more:

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    What is a Business Line of Credit?

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    A business line of credit is a flexible financial tool that provides businesses with access to funds up to a predetermined credit limit, functioning similarly to a credit card. Unlike a traditional business loan lump sum payout, a business line of credit allows borrowers to access funds as needed, providing quick access to capital when necessary.

    It allows companies to borrow and repay funds continuously, making it ideal for meeting various expenses such as purchasing inventory, covering payroll, or managing cash flow. You only pay interest on the funds you use. This form of versatile financing helps manage cash flow effectively, cover unexpected costs, and sustain day-to-day operations.

    How do I use an EIN instead of SSN to get Business Credit?

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    Most business lenders conduct a personal credit check and a business credit check for business financing, such as a line of credit. However, it may be possible to get a line of credit only using your federal Employer Identification Number (EIN) in some cases.

    Before starting this process, you should know it can be difficult to find lenders willing to approve lines of credit without checking your personal credit using your social security number (SSN).

    In addition, you’ll need to have strong business credit with an established history of on-time payments. Your EIN acts like an SSN for your business. When you apply for financing with your EIN, lenders review your business’s credit profile.

    Many lenders have stricter revenue and time in business requirements than they would if you also use your personal credit. You’ll also need to separate your business from your personal finances.

    Follow these steps to position your small business to get a line of credit with EIN only.

    Establish Your Business as a Legal Entity: The first step is to legally establish your business, which usually includes registering with your state. You can form your company as an LLC, general partnership, corporation, or other business type.

    Get Your EIN: Once you’ve established your business, the next step is applying for an EIN with the Internal Revenue Service (IRS). Obtaining an EIN is a straightforward process, and you can apply online at the IRS website.

    Open a Business Bank Account: Opening a bank account in your business’s name further separates your personal and business finances. Most lenders will want to review business bank account statements to verify cash flow when you apply for a business line of credit or loan.

    Build Business Credit: Next, you’ll want to establish and build business credit history. You can take out loans in your business’s name using your personal credit score. Another option is to apply for supplier credit but ensure the vendor(s) you work with report to the major business credit bureaus. Once your business has a solid credit history, you’ll have more luck applying for an EIN-only line of credit.

    Gather Your Documents: When applying for a line of credit or any other form of business financing using your EIN only, making your application as strong as possible is essential. Without a personal credit check, lenders require significant documentation. This can include business bank statements, business registration, financial statements, and even a business plan.

    Apply for a Business Line of Credit: Once you’ve completed the steps above, it’s time to apply. This includes finding a lender that offers the product you need and where you meet the eligibility requirements.

    Is it difficult to get a Business Line of Credit with EIN Only?

    Getting a business line of credit only using your EIN can be challenging. Most lenders and credit card issuers want to ensure the creditworthiness of the individual business owner(s) by conducting personal credit checks.

    In particular, new and younger businesses with unproven revenue streams are unlikely to get approved for business financing with an EIN only. More established businesses with employees and high revenue have more options for EIN-only financing.

    Business lines of credit with EIN only don’t require a personal credit check, which benefits small business owners as it won’t impact their credit history. However, most lenders that are willing to approve a business line of credit using EIN only still require a personal guarantee. That means the lender can pursue your personal assets if you default.

    Business Credit Cards

    One of the more accessible ways to establish a business line of credit is by opening a business credit card. Most credit card applications are less stringent than a bank or alternative lender-issued line of credit.

    Role of Business Credit Bureaus

    Business credit bureaus, such as Experian Business, Equifax Business, and Dun & Bradstreet, collect and maintain data on small business finances. This includes payment history, outstanding debts, and public records.

    Lenders and suppliers use this information to assess the risk of extending credit to a business. Small businesses can improve their creditworthiness by making timely payments and managing their finances responsibly, making them more appealing to potential lenders.

    How do I qualify for a Business Line of Credit with EIN Only?

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    Qualifying for a business line of credit with EIN only requires a strong business credit profile and financials. Let’s delve into the key factors influencing your eligibility and how to improve your chances.

    Strong Business Credit Score

    Business credit scores assess a company’s creditworthiness for lenders and suppliers. Factors like payment history, credit utilization, and length of credit history determine the score.

    A higher score means lower risk and better financing terms. Businesses should monitor and maintain their credit scores by making timely payments, keeping low balances, and managing finances responsibly to ensure access to necessary funding and resources for growth.

    Time in Business

    Lenders typically prefer working with established businesses that have a track record of successful operation. A longer history of consistent revenue and effective financial management demonstrates stability and reliability, making these businesses lower risk.

    As a result, they are more likely to be approved for a line of credit than newer businesses. Small businesses should focus on building a strong track record and demonstrating their ability to manage finances effectively to increase their chances of obtaining funding.

    High Annual Revenue

    Having high revenue is crucial when applying for a business line of credit with EIN only. High revenue demonstrates to the lender that your business is financially stable and capable of repaying the credit line.

    It also proves that your business has a consistent cash flow, reducing the risk for the lender. Additionally, a high revenue can help you qualify for a more significant credit limit, giving your business more financial flexibility and opportunities for growth.

    How do I create a successful Business Line of Credit Application with EIN Only?

    Putting together a successful application for a business line of credit using only your EIN requires more detailed information than using a personal credit check. Here are some tips to help you put together the strongest application possible.

    Maintain Your Business Credit

    As mentioned, your business credit is a significant determining factor when applying for financing with your EIN. Commercial lenders and business credit card issuers must rely solely on your business credit score. It’s essential to not only establish business credit but you must also maintain it. Regularly monitor your business credit reports and take steps to raise your business credit scores wherever possible.

    Put Together a Business Plan

    When applying for a business line of credit with EIN only, having a well-thought-out business plan and a realistic budget is crucial. Lenders will want to see that you clearly understand your business’s financial needs and how you plan to use the funds from the line of credit.

    Your business plan should outline your company’s goals, target market, competition, and financial projections. It should also demonstrate how the funds from the line of credit will be used to support and grow your business.

    Additionally, having a realistic budget shows lenders that you have carefully considered your financial needs and are prepared to manage the funds responsibly. This can help instill confidence in lenders and increase your chances of securing a business line of credit with EIN only.

    Understand & Meet Lender Requirements

    When applying for a business line of credit, it’s crucial to understand and meet the specific requirements set by the lender. These requirements can vary significantly between different lenders, so it’s important to do your research and be prepared to meet their criteria. Some lenders may prioritize a strong credit score and a solid financial history, while others may emphasize the business’s revenue and cash flow.

    Additionally, certain lenders may require collateral or a personal guarantee, while others may not. By understanding the specific requirements of each potential lender, you can tailor your application and increase your chances of securing the business line of credit that best fits your needs.

    Prepare Documentation

    As mentioned, applying for a business line of credit with EIN only typically requires more exhaustive documentation than when using your SSN. Be prepared with the following documents:

    • Business financial statements (balance sheet, profit and loss statement, cash flow statement, etc.).
    • Business tax returns.
    • Business plan.
    • Business bank statements.
    • Business legal documents.
    • Business credit history.

    What are the benefits of an EIN Only Business Line of Credit?

    Obtaining a business line of credit with an EIN only is advantageous as it allows for a clear separation between personal and business finances. Using an Employer Identification Number (EIN) to secure credit, business owners can avoid intertwining personal funds with their company’s financial activities.

    One significant benefit of securing an EIN-only business line of credit is the opportunity to establish a robust business credit profile. This separate credit history enables businesses to build a strong foundation for future financial endeavors, such as obtaining larger loans or negotiating favorable terms with vendors and suppliers.

    Only using your EIN to apply for a business line of credit means lenders won’t check your personal credit report. This can be beneficial for credit-challenged small business owners. In addition, it means your credit score won’t take a hit for a hard credit check.

    What are the drawbacks of an EIN Only Business Line of Credit?

    The most significant drawback is that small business owners have fewer options for lenders or credit card issuers willing to approve applications with only your EIN. Most lenders will want to check your personal credit as well as your business credit.

    While opening a business credit line using just your EIN helps protect your personal finances and credit history, many lenders still require a personal guarantee. As mentioned, that means your personal assets are at risk if you default.

    Without checking your personal credit scores, lenders might view your application as high-risk. This can lead to higher interest rates, increased fees, and lower approval rates.

    EIN-Only Business Line of Credit Pros & Cons

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    • Separate personal and business finances.
    • Helps establish a strong business credit profile.
    • No hard credit check in your personal credit history.
    • Easier to get approved for credit-challenged business owners.


    • Few lenders will consider an EIN-only application.
    • Lower approval rates.
    • Potential for higher interest rates.
    • Still requires a personal guarantee in most cases.

    Frequently Asked Questions

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    Here are the most common questions about how to get a business line of credit with EIN only.

    Can I get a Business Credit Card with EIN Only?

    Yes, it’s possible to obtain a business credit card using only your EIN (Employer Identification Number) without requiring a personal guarantee or SSN. You’ll likely have greater approval odds for a business credit card than a lender-issued line of credit.

    Researching Various Business Credit Card Issuers

    Research different business credit card issuers to identify one that best suits your company’s needs and offers favorable terms. Compare factors such as interest rates, rewards programs, annual fees, and introductory offers. Look for a card issuer that aligns with your business goals and financial requirements.

    Corporate Credit Cards

    Numerous major business credit card issuers offer corporate cards that rely solely on the business’s credit profile rather than the owner’s personal credit history. This means that your business’s strong credit standing can be the key to securing a corporate card.

    Can I qualify for a higher Credit Limit using just my EIN?

    The amount of credit available through an EIN-only application depends on various factors, such as the financial stability and performance of the business. Lenders typically evaluate revenue, profitability, and industry trends to determine the maximum amount they can extend as a line of credit.

    Does the industry impact approval for a Business Line of Credit with EIN Only?

    While eligibility criteria vary among lenders, most businesses across different industries can apply for a business line of credit using their EIN. However, certain high-risk industries might encounter more stringent requirements due to their nature or market volatility.

    What are my alternatives to an EIN-only Business Line of Credit?

    Getting approved for any form of business financing using only your EIN is difficult, as it only allows lenders to review your business credit history. The most accessible alternative is using your SSN to allow for a personal credit check. However, some online business loans and alternative funding solutions like merchant cash advances might be possible with an EIN only.

    Difference Between Personal and Business Credit

    When applying for a business line of credit, it’s crucial to differentiate between personal and business credit. While personal credit is tied to an individual’s finances, business credit pertains specifically to a company’s financial history.

    Other Small Business Loans

    Using both personal and business credit opens the door to more financing options. You might be interested in one of the following small business loans:

    How to Get a Business Line of Credit with EIN Only – Final Thoughts

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    Getting a business line of credit using just your EIN is difficult but not impossible. You must find the right lender, create a solid business plan, and demonstrate reliable financials.

    Using just an EIN helps keep your personal and business finances separate while protecting your consumer credit scores. However, most business financing options, including lines of credit, will require a personal credit check.

    Contact us if you have more questions about EIN-only lines of credit or to apply for a small business loan. Our alternative business funding experts can help you find the most advantageous financing options for your business goals.

    We will help you grow your small business.

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        At UCS, we understand the value of your time and want to ensure that your application has a great chance of approval. Please take note of the following details before applying:
        • To be eligible, it’s necessary to have a business bank account with a well-established U.S. bank such as Chase, Wells Fargo, Bank of America, Citibank, or other major banks. Unfortunately, online-based bank accounts like PayPal, Chime, CashApp, etc., are not permitted.
        • When describing your current average monthly sales deposits to your business bank account, please provide accurate information. Our approval process is based on your current business performance, and it’s essential to provide accurate details about your current sales in the first question on the application form. We cannot approve applications based on projected revenues after receiving funding.
        We appreciate your understanding and cooperation in ensuring a smooth and successful application process.
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