You Have to Borrow Money When You Don’t Need It!

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Filed under: Market Comentary

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The topic that I discussed in the video for the week is mainly a public service announcement, targeted for my contacts who are business owners or have an entrepreneurial mindset. Anyone who doesn’t work a salaried job has a high risk of facing cash flow issues at some point.

This topic came up earlier this week when I was talking with a friend, and I thought it would be a good thought to pass on in my weekly video. My friend mentioned an interesting concept, which is the idea of borrowing money when you don’t need it so that the cash is readily available when it is needed.

Cash Flow Crunches are Going to Come Up

As a business owner, there is no way around the cash flow issues that you will be facing at some point. It is an expected part of business, especially since the market and industry can ebb and flow. At one point, you might have plenty of cash on hand to buy the necessary inventory. Then, the next month you might be strapped as you are trying to make payroll. So, you want to be sure that you have lines of credit available to cover the costs when they come up.

Right now the economy is strong, which means that most people aren’t thinking about the potential slow times that might happen in the future. But, it is actually the perfect time to think about these things when the times are good. You need to be sure that you have the options in place so that you are prepared to bridge the gap when facing cashflow issues in the future.

Arranging these lines of credit can be a great option even if you don’t need the money right now. Keep in mind that you might have a hard time getting the financing that is needed when you are hard up for cash in the future because of your financial situation at that point.

At Franklin Loan Center, we do a little bit of home equity lending. But, there are many other options out there if you are looking for a business line of credit. I can help to connect you with the business services that are available in the area. Don’t forget to like, share, and comment so that this information can help your business contacts as well.

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