All posts by GetUWired12

cash flow statements

When You Barrow, You Are Being An Optimist

When your company borrows money, you are assuming you will be able to use the funds, produce a surplus and then somehow return the funds (or show that you have them).

This holds true for any kind of loan, whether it is a bank line of credit, a term loan, equipment loan or a Merchant Cash Advance.

The two parties – lender and borrower – agree on the payback, collateral and degree of risk, all of which will be reflected in the interest rate.

Regardless, you are betting on the fact that “it is all going to work out all right”, and the majority of times it does (except for Merchant Cash Advances).

The ideal scenario is when you capitalize your company and use your own money to run the operations (and yes, perhaps have the company pay interest). That way, if things go wrong, you don’t owe anything to anybody. Like paying off your mortgage.

Factoring by the way is totally different. Factoring is not a loan. Factoring converts an asset you cannot use today (receivables) for one you can (cash).

Capital Solutions Bancorp can help provide you with the guidance you need to make the right decisions for your business!

If cash flow is what is taking sleep away from you, give Carlos Weil, CEO a call at 800-499-6179 x408.

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If you are not absolutely delighted with our service within the first 30 days of funding, you can leave and get 100% of your fees refunded to you. NO QUESTIONS ASKED!

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