It\u2019s rare that a company can effectively grow without the assistance of bank debt.\u00a0 Managed right, debt is our friend.<\/p>\n
Purchases of equipment that will last several years should be financed over a term of 5-7 years so that the debt payments are matched by cash inflow from customers that buy the goods you created from use of the new equipment.\u00a0 These are referred to as \u201cterm loans.\u201d<\/p>\n
Working capital loans, or \u201clines of credit,\u201d represent short-term borrowing that bridge the time from when you pay for rent, wages, material purchases, etc. , to the time customers pay you for delivered products and\/or services. A good banking relationship is normally key to business growth<\/p>\n","protected":false},"excerpt":{"rendered":"
It\u2019s rare that a company can effectively grow without the assistance of bank debt.\u00a0 Managed right, debt is our friend. Purchases of equipment that will last several years should be financed over a term of 5-7 years so that the debt payments are matched by cash inflow from customers that buy the goods you created…<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","cybocfi_hide_featured_image":"","footnotes":""},"categories":[29],"tags":[],"class_list":["post-1504","post","type-post","status-publish","format-standard","hentry","category-other"],"acf":[],"yoast_head":"\n