Quote:
Originally Posted by pornguy
Yep soooo true..
I was stunned the day I saw some Texas Million air in an interview say that he could not make payroll if he could not get a loan form the bank. WTF...
Thats not being in business, thats being stupid.
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Every business will experience cashflow problems from time to time. If you grow your business at too fast of a pace, you are financing more receivables to your customers. In most cases you won't see your money for 30-45 days. Yet,on friday you must make payroll. While you are waiting to see your cash come in you will cover up to 6 payrolls. Where does that money come from?
Answer - You have a line of credit with your bank.