When is debt not the evil thing we think it is? When it is business debt. Here you can have a balancing act between needing money to grow your business and getting under a mountain of debt and having it crush you into bankruptcy. I’m going to share some insights that made me a millionaire as a businessman. They’re simple and will work for you too.
When are business debts are a good idea; when I need the money to grow my business. I sell a product and get paid for it in 30 days, well sometimes they push it to 60 days. I need operating money to cover that period and the more money I can have out the more money I can make.
Remember you only make money if they actually pay you. If you are so busy with new accounts, which is the fun part, you might get a little sloppy with collecting outstanding accounts, which is not the fun part.
If you get too far behind and cannot service (pay) your debts someone will come and take stuff from your office until they are satisfied you are even. This really is not good for company morale and yes I have seen it done. Business debts are normally for investing in something business related. Inventory, a building, payroll, even patent applications. Most lending institutions have a higher respect for business ventures and apply a much lower interest rate to those types of loans. They know from experience that a business is way more likely to make money and repay the loan. Compare this to someone who wants $5,000 for a new wide screen TV. The lender knows the TV will lose most of its value the second it leaves the store and is a higher risk for them, so they charge a higher interest rate.
While most businesses do fail in 10 years, not many of them are trying to fail. Lenders understand that and overall give better terms and rates to business loans. Businesses can use that leverage to grow their business much quicker. You still have to apply good money management skills or if it goes bad, it normally goes bad with a lot more of your money at stake.
You get good money managements skills from your personal finances. Learn to save money, keep your credit card balance at zero, invest in things you know and repeat this until rich. The same with a company, keep your customers happy, keep debts low and cash flow working, and invest in things that get you more and better clients. The most important thing is, when you get a concept that works, work that concept until it does not work anymore. Do not change something that makes you money.
Too many business owners love to spend money and do not like to collect money. This will kill your business, make sure you have the ability to sell your products to clients you know have a high probability of paying you. This skill is often learned the hard way, meaning they don’t pay you and you go under. If you have no experience it can be worth it to hire someone who can keep an eye on your receivables (money owed to you).
There are a lot of lessons in this article, how to use debt, how that same debt can crush your business. How personal finance habits can and will affect your business and to know when to hire an expert. I hope you can use these and grow your business into a huge success, the more of us that are out there the better.
Ward Willison is a Self Made Millioniare who offers free debt elimination Tips and information for people wanting to get out of debt
Article Source: http://EzineArticles.com/?expert=Ward_Willison
Subscribe to:
Post Comments (Atom)
8 comments:
Hi !.
might , probably very interested to know how one can make real money .
There is no initial capital needed You may begin earning with as small sum of money as 20-100 dollars.
AimTrust is what you haven`t ever dreamt of such a chance to become rich
The company represents an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.
It is based in Panama with affiliates everywhere: In USA, Canada, Cyprus.
Do you want to become really rich in short time?
That`s your choice That`s what you wish in the long run!
I`m happy and lucky, I started to get income with the help of this company,
and I invite you to do the same. If it gets down to choose a proper partner who uses your money in a right way - that`s it!.
I make 2G daily, and what I started with was a funny sum of 500 bucks!
It`s easy to join , just click this link http://jasaniqaqu.servetown.com/obokev.html
and lucky you`re! Let`s take this option together to get rid of nastiness of the life
Hi !.
You re, I guess , perhaps curious to know how one can make real money .
There is no initial capital needed You may commense earning with as small sum of money as 20-100 dollars.
AimTrust is what you thought of all the time
The company represents an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.
It is based in Panama with offices everywhere: In USA, Canada, Cyprus.
Do you want to become really rich in short time?
That`s your chance That`s what you desire!
I`m happy and lucky, I began to take up income with the help of this company,
and I invite you to do the same. If it gets down to choose a correct partner who uses your savings in a right way - that`s the AimTrust!.
I take now up to 2G every day, and my first investment was 500 dollars only!
It`s easy to join , just click this link http://tinysykup.easyfreehosting.com/jiwinu.html
and lucky you`re! Let`s take our chance together to feel the smell of real money
Hello !.
You re, I guess , probably very interested to know how one can make real money .
There is no initial capital needed You may commense to get income with as small sum of money as 20-100 dollars.
AimTrust is what you thought of all the time
AimTrust incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.
It is based in Panama with structures everywhere: In USA, Canada, Cyprus.
Do you want to become really rich in short time?
That`s your choice That`s what you desire!
I`m happy and lucky, I began to take up real money with the help of this company,
and I invite you to do the same. It`s all about how to select a correct companion utilizes your money in a right way - that`s it!.
I earn US$2,000 per day, and my first deposit was 1 grand only!
It`s easy to get involved , just click this link http://xylyvezuxo.ibnsites.com/aryquku.html
and go! Let`s take our chance together to feel the smell of real money
Bookmarked this. Sometimes non-standard due to you for sharing. Positively benefit my time.
This is a superior article as they all are. I tease been wondering less this as some measure now. Its gigantic to note down this info. You are objective and balanced.
This is a superior article as they all are. I have been wondering less this as some measure now. Its vast to grow this info. You are reasonable and balanced.
Good day, sun shines!
There have were times of hardship when I felt unhappy missing knowledge about opportunities of getting high yields on investments. I was a dump and downright stupid person.
I have never thought that there weren't any need in large starting capital.
Now, I feel good, I started take up real money.
It's all about how to choose a proper partner who uses your funds in a right way - that is incorporate it in real deals, and shares the profit with me.
You can ask, if there are such firms? I'm obliged to answer the truth, YES, there are. Please get to know about one of them:
http://theinvestblog.com [url=http://theinvestblog.com]Online Investment Blog[/url]
Hey,
When ever I surf on web I never forget to visit this website[url=http://www.weightrapidloss.com/lose-10-pounds-in-2-weeks-quick-weight-loss-tips].[/url]consolidation-loans-debt-loans.blogspot.com really contains lot of useful information. Let me tell you one thing guys, some time we really forget to pay attention towards our health. Here is a fact for you. Research indicates that nearly 70% of all United States adults are either obese or overweight[url=http://www.weightrapidloss.com/lose-10-pounds-in-2-weeks-quick-weight-loss-tips].[/url] So if you're one of these citizens, you're not alone. Infact many among us need to lose 10 to 20 lbs once in a while to get sexy and perfect six pack abs. Now the question is how you are planning to have quick weight loss? You can easily lose with with little effort. If you improve some of your daily diet habbits then, its like piece of cake to quickly lose weight.
About me: I am blogger of [url=http://www.weightrapidloss.com/lose-10-pounds-in-2-weeks-quick-weight-loss-tips]Quick weight loss tips[/url]. I am also health trainer who can help you lose weight quickly. If you do not want to go under painful training program than you may also try [url=http://www.weightrapidloss.com/acai-berry-for-quick-weight-loss]Acai Berry[/url] or [url=http://www.weightrapidloss.com/colon-cleanse-for-weight-loss]Colon Cleansing[/url] for effortless weight loss.
Post a Comment