Business credit refers to a type of financing that is extended to businesses by lenders, such as banks or financial institutions. It allows companies to borrow money to fund their operations, investments, or expansion efforts without having to rely solely on their own cash flow or personal assets. Business credit can be obtained in various forms, including loans, lines of credit, and credit cards, each with its own terms and conditions. Establishing business credit is important for companies as it allows them to build a positive payment history, which can help them secure future financing at better rates or with more favorable terms.