When it comes to small business financing, too many fail to "think outside the bank." Too many individual entrepreneurs, for all the publicly acclaimed ingenuity of the class as a whole, can only conceive of their finances in very simplistic terms. For example, when it comes to operating expenses, many business owners can only think of borrowing money (from the bank, of course) and putting more equity in the business (also involving, typically, the bank). But business financing can be much more "creative" than that - and still remain perfectly legal (!) - as this article will show.
However, before proceeding any farther, let us take note of this all-important legal disclaimer: neither author nor publisher shall be deemed liable in any manner whatsoever for sharing the following information, which is only provided as mere opinion and should never be misconstrued as any kind of professional advice. All readers are urgently advised to consult with the relevantly licensed and qualified when making business decisions of any financial consequence!
Now, with that out of the way, let's take a look at a form of small business financing that's so incredibly simple and right under your nose. Yes, in fact, as a business owner you are more likely than not already a recipient of such financing!
This most powerful and almost cost-free financing is, simply, the credit that your suppliers currently extend to you. No, really! If you think about it, by allowing you to pay back later (usually by the end of the month), they are in effect financing a part of your operations until then! Such financing is interest-free if you pay back within the mutually agreed-upon period previously established, at the outset of your relationship with your supplier. Now, if you could figure out how much of a proportion is actually being financed by your suppliers, you should be able to manipulate the variables involved in your favor, increasing and maximizing that proportion so as to allow you to run your business on their credit lines! (That is, the credit lines they extend to you.)
The simplest way to think about this is to multiply your assets by a hundred (for an answer in percentage form) and then divide by the amount of your accounts payable. It's nothing short of mandatory small business financing! Suppliers participate, whether they want to or not, because purchasing on credit is the norm for most businesses. Just be sure to remain in good standing, with prompt payments, and your suppliers will be happy to "finance" you indefinitely!
Author Resource:-
Written by Paul Wise, who has applied for small business financing and recommends BFAdvance.com for small business loans and other entrepreneurial business aids.
![[Valid RSS feed]](http://www.articlesbacklink.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
