What to Consider Before Taking Out a Business Loan
May 02, 2023I'm discussing the opportunity to get more cash into your business, in a realistic and feasible way, when you’re feeling cash-strapped. It is essential to identify how extra cash will actually serve you in your business and ensure that you can make more on the money than it's costing you to borrow it
It is also critical to have accurate cash flow forecasting when deciding on an additional injection of cash. Forecasting can help you anticipate the timing, and amount of cash needed, allowing for better planning and management.
They key takeaways from this episode are:
1. It's important to identify realistic and feasible ways to get more cash into your business when feeling cash-strapped.
2. Determine how the extra cash will serve your business and ensure that you can make more on the money than it costs to borrow it.
3. Accurate cash flow forecasting is critical in deciding on an additional injection of cash, allowing for better planning and management, and it's important to get the proper type of loan for your needs and understand the terms.
What you'll hear in this episode:
[1:15] If you’re feeling cash-strapped in your business, how can you get more cash in a realistic and feasible way?
[2:40] How to identify whether extra cash will actually serve you in your business.
[5:50] Ensuring that you can make more on the money than it's costing you to borrow it.
[7:10] The importance of cash flow forecasting when deciding on an additional injection of cash.
[9:30] Make sure you are getting the proper type of loan for what you need and that you understand the terms.
[12:15] Summary of what should be considered prior to getting a loan.
Related episodes:
Cash Flow Series Part 1: How to Measure Cash Flow
Cash Flow Series Part 2: How to Maximize Cash Flow
3 Ways Your Business is Leaking Cash
Resources:
Cash flow forecast template: https://www.keepwhatyouearn.com/cash-flow-forecast
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
