Financing Your Business:  Closing Thoughts

As this series comes to a close, I wanted to add a few things.  I left off many of the more odd forms of business finance.  The ones that I have discussed are what I would say are the most typical.  There are more.  In fact, there are so many varieties that it boggles the mind.  Some of these are for rare situations.  Others are for specific industries.  If you are unclear of what you are being offered, drop me a line.  I am happy to talk to you about it.

Some of these financing options come at really high interest rates.  Credit Cards are generally very expensive if they hold a balance.  The better credit that your business has, the more likely you can get a lower rate.  There are business credit counsellors that can help with that as well.

There is a natural tension in the Accounting world between Credit and Taxes. Saving money on Taxes means you are lowering your Profit.  By doing this, you lower your ability to obtain Credit.  There is no way around this except to identify the ways that you have lowered your taxes and keep them separated from other expenses.  This can allow you to show a lender or investor what you have done.

Finally, I want you to think like an investor (and lending is a form of investing).  They want to know how they are going to get their investment back with a rate of return.  A CFO that I worked with said once that they (investors) don't care if you make dollies or donuts.  What they want is to make money.  The primary vehicle to communicate this is a Business Plan.  If you don't have one, get one.  Learn to make it a living document and understand your numbers.  Again, feel free to contact me if you don't know how that works.

Have a great day!

Jim Sackman
Focal Point Business Coaching
Business Coaching, Leadership Training, Sales Training, Strategic Planning

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