Why Your Salon Needs to Build Credit

Establishing and building your small business credit is really important because there may be a point in time that the survival of your spa or salon will depend on its accumulated positive business credit rating.

A good business credit score can help you get loans, credit cards, increase the value of your salon or spa if you choose to sell it, and protect your personal credit.

What is Small Business Credit?

Businesses have a credit score just like you have a personal credit score. It shows a track record of your salon or spa's financial responsibility. This helps banks and investors determine whether or not your salon or spa is safe to lend money to or a solid candidate to do business with. Maintaining a score of 80 or higher is a good rule of thumb.

How to Establish Small Business Credit?

  1. Start reading financial books and blogs to become more money savvy. Knowledge is POWER!

  2. Open a business checking account.

  3. Open a business credit card and no longer put business expenses on your personal credit card. We recommend this business credit card from Chase because it has no annual fees and a good rewards program.

  4. Establish your bills in your business' name instead of your own (ie. electricity, rent, etc). And, always pay on time.

  5. Time is your friend...the longer you have a credit history in your business' name, the more credible your business appears to be.

Financial Book Recommendation:

My personal #1 favorite...

Money Book for The Young, Fabulous, and Broke by Suze Orman (buy on Amazon here).

The New York Times bestselling financial guide aimed squarely at "Generation Debt"—and their parents—from the country's most trusted and dynamic source on money matters.

The Money Book for the Young, Fabulous & Broke is financial expert Suze Orman's answer to a generation's cry for help. They're called "Generation Debt" and "Generation Broke" by the media — people in their twenties and thirties who graduate college with a mountain of student loan debt and are stuck with one of the weakest job markets in recent history. The goals of their parents' generation — buy a house, support a family, send kids to college, retire in style — seem absurdly, depressingly out of reach. They live off their credit cards, may or may not have health insurance, and come up so far short at the end of the month that the idea of saving money is a joke. This generation has it tough, without a doubt, but they're also painfully aware of the urgent need to take matters into their own hands.

The Money Book was written to address the specific financial reality that faces young people today and offers a set of real, not impossible solutions to the problems at hand and the problems ahead. Concisely, pragmatically, and without a whiff of condescension, Suze Orman tells her young, fabulous & broke readers precisely what actions to take and why. Throughout these pages, there are icons that direct readers to a special YF&B domain on Suze's website that offers more specialized information, forms, and interactive tools that further customize the information in the book. Her advice at times bucks conventional wisdom (did she just say use your credit card?) and may even seem counter-intuitive (pay into a retirement fund even though your credit card debt is killing you?), but it's her honesty, understanding, and uncanny ability to anticipate the needs of her readers that has made her the most trusted financial expert of her day.

Over the course of ten chapters that can be consulted methodically, step-by-step or on a strictly need-to-know basis, Suze takes the reader past broke to a secure place where they'll never have to worry about revisiting broke again. And she begins the journey with a bit of overwhelmingly good news (yes, there really is good news): Young people have the greatest asset of all on their side — time.

Email us if you have questions!


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