I read a wonderful article on www.thexbanker blog page about using a different types of capital to fund your business . Like equipment leasing, renting, I would add all kinds of flor planning and pay on extended terms accts. The advantage of this kind of funding is, that unlike unsecured biz. lines of credit, you don’t necessary need an excellent personal credit to get it. If you are a start up, or even revenue generating business already, sooner, or later you will find out, just as I did ( BTW, the very hard way ), that Cash is the King.
Make no mistake, when you starting a business venture, you most likely need to spend some cash, deposit for this and that…blah, blah, blah….But before you purchase $ 5,000.00 or even more worth of equipment and pay cash for it, let me suggest, you find a smarter way to get it . It will cost you additionaly on fees, or interest charges, but at the same time you will preserve the precious cash, to pay electric bill, phone & internet bill, or just wages to the people you got involved in your “crazy” dream.. What is the smarter way, I had hinted on the beginning of the post and if you are brave enough to go and start something on your own, you better be smart enough to find how to get that stuff done, without me to telling how..
As always something from personal experience : The value of just a little cash in your biz. acct. left free to use right now, you will realize, when your business is really profitable on paper and in the books, but everybody, you doing business with is owing you money and their payment is coming in two weeks from now. Hurray, we got the cash coming, right?? Right, but the utility company don’t want to wait two more weeks, not to mention, the few people standing by you are having kids and the lunch money in the school are due tomorrow…That’s beside the point, people helping you achieve your dream need to be rewarded and the best reward is on time paycheck( however small or big).
It sounds and also could feel “weird”, that in the 21st century, when everything is done online, people don’t even use cash money for purchases anymore and VISA is everywhere, you want to be…..In the business and even more in the world of small business…Cash is The King, if you don’t believe it, you will know, when you don’t have it…..
Count on it.
P.S. For those, who require more explanation, just this. I doubt, that the guy, whom you hired of the streets( just to save a buck), to clean your office window, because it is so filthy, that you have to have the lights on even during a sunny day, have a credit card machine in his pocket ready to take your $ 20.00 payment to him…